Apple Hit With 3G iPhone Lawsuit

"It has the feel of a product that was rushed to market and went through testing too quickly," he said. "They were very concerned about the number of competitive products coming to market so they rushed the phone out. And the end result was it wasn't done, it wasn't cooked."

"Cooked" or not, some loyal Apple fans and current iPhone owners seemed frustrated and bewildered. Will the iPhone problems damage the Apple brand?

"This is Apple's first 3G phone, and it is a very, very high profile. … It is a product that is sold as much on its design appeal as its data communications capability," said NPD Group analyst Ross Rubin. "The greatest risk is likely among people who are new to the Apple ecosystem, and this may be their first product, [people] who were drawn by [a] lower price and this is what they have to go on."

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