According to Ive, Apple was very close to canceling plans to enter the smartphone market.
“We nearly shelved the phone because we thought there were fundamental problems that we can’t solve. With the early prototypes, I held the phone to my ear and my ear [would] dial the number. You have to detect all sorts of ear-shapes and chin shapes, skin color and hairdo that was one of just many examples where we really thought, perhaps this isn’t going to work.”"
Link to Original Source