Wired have a great article looking at some of the lesser known aspects of the iPhone, Apple's foray into the mobile phone market. It's a really interesting read and highlights some of the innovative strides that have been made:

The iPhone cracked open the carrier-centric structure of the wireless industry and unlocked a host of benefits for consumers, developers, manufacturers — and potentially the carriers themselves. Consumers get an easy-to-use handheld computer. And, as with the advent of the PC, the iPhone is sparking a wave of development that will make it even more powerful. In February, Jobs will release a developer's kit so that anyone can write programs for the device.
...
It may appear that the carriers' nightmares have been realized, that the iPhone has given all the power to consumers, developers, and manufacturers, while turning wireless networks into dumb pipes. But by fostering more innovation, carriers' networks could get more valuable, not less. Consumers will spend more time on devices, and thus on networks, racking up bigger bills and generating more revenue for everyone.

It seems likely that development of Google's Android platform has certainly been spurred on by the success of the iPhone. Overall it's good news for consumers everywhere with more choice and more freedom on the cards.