• The Wall Street Journal (subscription required), Monday, February 19, 2007 1:15 PM

Apple bucked the rules of the cell-phone industry by wresting away control of the development and marketing of the iPhone--the sleek device also designed to surf the Web and double as an iPod music player--from the normally powerful wireless carriers.

The iPhone had been in development by Apple and Cingular for two years, but only three executives at Cingular got to see it before it was revealed to the world last month. Cingular also agreed to leave its brand off the body of the phone.

In another break with standard practice, the iPhone has an exclusive retail network. The partners are making it available only through Cingular and Apple stores, as well as both companies' Web sites.

While meeting with Cingular and other wireless operators, Apple co-founder and CEO Steve Jobs dismissed them as commodities and told them that they would never understand the Web and entertainment industry the way Apple did, says a person familiar with the talks.

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