As an former Apple user still wearing an 'evangelist' badge in a PC world, I'm impressed with what PR and buzz --rather than advertising-- has achieved for a brand that graced Wired magazine ten years ago with just one word: "Pray."
So the prayers did work. Because what Apple's doing with the iPhone is not just entering the phone market. It's charging into the PC market. As Wall Street Journal's Walt Mossberg rightly observes this is computer with a service plan attached to it.
You've got to agree that it's a very expensive toy. But Apple knows its raving fans (or fan-boys) don't consider price. They're into that other P in marketing: passion. Is it Microsoft's time to start praying?