This is an interesting lawsuit for a few different reasons. Firstly I am not sure if it was absolutely the first phone but it must have been pretty close to it but both Nokia and Sony Ericsson have had touch screen devices where you could move objects around and resize them etc using touch back before 2004. I believe that Nokias first touch screen was the 7710. Any sony had the p Series around the same time. On the Sony Ericsson side there was the P800 which was revolutionary at the time. In fact if you actually look at many of the elements of the P800/UIQ interface you can see that there is a major similarity between those of 2002 and the iphone of 2007. So I take it from that what apple actually has patents on is the thumb? I'm pretty sure there is prior art to that too.. depending if your a creationist or a evolutionist maybe the chimpanzee has some patents..
If we outline the patents what's explained in this patent 7,469,381 is something that you could do on the UIQ's back in 2002...
It's interesting that there are some more points relating to the Windows Mobile phones that they create as well...