I do some web design for a company that makes iPhone apps and he made the point to me that the biggest issue is hardware. His company is small, two developers,

I do some web design for a company that makes iPhone apps and he made the point to me that the biggest issue is hardware. His company is small, two developers, and they couldn't be half as productive if they needed to test for a thousand different hardware configurations. With the iPhone, you are guaranteed that there is only one or two configurations and you know exactly what they are. I imagine a lot of these companies are small groups of developers in similar situations. Also, people with iPhones are people with money. Not a bad demographic to develop for.