Apple should pull the plug on the iPhone... What Apple risks here is its reputation as a hot company that can do no wrong. If it's smart it will call the iPhone a 'reference design' and pass it to some suckers to build with someone else's marketing budget. Then it can wash its hands of any marketplace failures... Otherwise I'd advise people to cover their eyes. You are not going to like what you'll see.
IBM uses what I like to call the 'hole-in-the-ground technique' to destroy the competition..... IBM digs a big HOLE in the ground and covers it with leaves. It then puts a big POT OF GOLD nearby. Then it gives the call, 'Hey, look at all this gold, get over here fast.' As soon as the competitor approaches the pot, he falls into the pit