Mystery and anticipation swirled around Apple a year ago. The company had just expanded its iTunes store to include movies, it was preparing a set-top box codenamed iTV, and word was still circulating of a possible mobile phone.

Apple did not disappoint, giving its dedicated fans and media pundits ample material in 2007.

The year began with a bang when Steve Jobs delivered a MacWorld keynote that would electrify the entire technology industry.

The Apple chief executive revealed that the company would be releasing a touch-screen phone equipped with media player and internet capabilities.

The unveiling of the iPhone sent shockwaves through the computing and mobile phone industries, and proved an early indication of the year to come.

Six months of speculation on the iPhone followed, and anticipation mounted as information about pricing plans and technical specs trickled out.

Despite criticism over what some said were excessive restrictions on development and network use, a consumer and media frenzy was in full force by the time of the June release.

Customers lined up days in advance throughout the US, and more than 270,000 units were sold in the first two days.

Following the release, legions of hackers got to work on removing the iPhone's two most controversial features: a lock in to the AT&T mobile network; and the inability to install third-party software.

As the summer drew on, methods were devised to allow for third-party software to be installed, and in late August news broke that the Sim locks on the iPhone had been broken, allowing users to run the phone on any wireless network.

Apple stated that, while it did not authorise users to perform either activity, it would not take special steps to deactivate unlocked iPhones.

But the company warned that future updates could conflict with the modified phones and cause irreparable damage.

The next iPhone update did just that, causing a conflict that left unlocked phones unable to boot up or restore. It took hackers nearly a week to develop a method to restore the phone.

Autumn brought the first European launch of the iPhone, going on sale in the UK and Germany on 9 November and in France three weeks later.

As the year nears its end, the iPhone looks set to continue its dominance of the headlines well into 2008.

A 3G model is expected next year and, as the phone continues to expand, rival carriers and local governments have challenged Apple's single carrier approach.