When iPhone was introduced in 2007 it created waves in the mobile industry. It was the first smart phone which exceptional design and amazing features. Many features became industry standard which can now be found in the new generation of phones manufactured by HTC, Nokia, BlackBerry etc. Some of the product trends started by Apple are multi-touch screen, sleek design, full operating system and a real web browser, touch QWERTY keyboard, touch scrolling, etc. In most countries Apple sold a locked iPhone with a 2 year contract. For example in US, UK and many other countries Apple had a deal with single telecom operator. This meant that customers could not use iPhone on any other network than the specified network. But soon customers found their way out to unlock iPhone and use it on any other network. This resulted in iPhone to penetrate many countries where iPhone was not launched formally like India, Pakistan, Bangladesh, etc. Apple under the shrewd leadership of Steve Jobs was able to capture a significant share in the market. Overall, over 10 million iPhones have been sold. In US, Apple has the second highest market share in the smart phone category. The success of iPhone can be attributed to the extreme innovation at Apple research and the clever marketing techniques used. By keeping an independent services contract with Telecom companies Apple was able to make huge profits even after iPhone was sold. Telecom companies like AT&T pay Apple huge amount of money for exclusive right to provide services on iPhone.