An inside source, close to the fledgling Apple iPhone 3.0 project, reports that turmoil within the design team may be causing ever-lengthening project delays. The iPhone 1.0, set to bow at MacWorld 07, may be put on hold due to infighting and personnel issues on the 3.0 development team.
TUAW's source said Steve Jobs became infuriated this week during a supposedly routine check-up of the iPhone wing of the Apple campus. After viewing the 3.0 team's Keynote presentation of device concepts, Jobs declared the project to be one of Apple's most "schizophrenic" in recent history and subsequently fired nearly half the 3.0 design team.
Philip Schiller, Apple's senior VP of Worldwide Product Marketing, has apparently pulled v1.0 from the upcoming Macworld Expo after hearing word of the 3.0 firings. Internal memos indicate a deep company-wide concern about the product flopping, even before going on sale.
At this time, no new launch ETA has been set. The unfilled positions on the iPhone product teams may force the iPhone 1.0 out to at least Q3 07, and possibly into Q1 08.