iPhone hitting development snags?

The expert also suggested that the shift of software team members from Mac OS X Leopard to the iPhone was in response to issues discovered late into the testing phase. "Typically the manufacturer and the service provider are making sure the phone meets all its specifications," he said. "It's clear they have found some issues that they need to fix."

Apple's statement last week didn't mention when the transfer had occurred, however. Financial researchers have also weighed in and posited the idea that the Leopard delay is more due to ambitious features than a shift of resources to a more urgent project. Envisioneering Group head Richard Doherty noted that the stakes were high and that Apple had to ship a truly polished device to avoid a backlash.

"They don't want it to be a version 1.0 of the iPhone, but version 4.9," he said, referring to the glitches that frequently surface in early hardware and software. "Apple wants to get it right the first time." Doherty added that he'd seen no obvious problems in the short amount of time he'd been given to try the handset.

Apple has so far supported these reports and claimed that the iPhone has already passed multiple key tests before it can be used on AT&T's cellular network this summer.