The firm had this to say about the iPhone and the 2.0 update:
"Appliance-level" status permits the iPhone to be used for PIM, e-mail, telephony and browsing applications. It also permits the device to be used for other dedicated functions where the software is supplied by a third party, functionality is kept to a restricted set, the software supplier offers support for a backup platform and IT development resources are not needed to program custom code locally residing on the device.
The real kicker came from Garter vice president and analyst Ken Dulaney:
"The iPhone will thus match up initially in several segments against its main smartphone competitors—BlackBerry, Windows Mobile and Symbian Series 60."