It was clear that the prototype was still a disaster. It wasn't just buggy, it flat-out didn't work. The iPhone dropped calls constantly, the battery stopped charging before it was full, data and applications routinely became corrupted and unusable. The list of problems seemed endless. At the end of the demo, Jobs fixed the dozen or so people in the room with a level stare and said, "We don't have a product yet."

That was then.