After more than a year, the iPhone continues to dominate conversations and set trends in the mobile device industry. Its easy-to-use, engaging and fun interface is driving not only sales, but innovation on the part of competitors. Combined with Motorola's decline and rumblings about 4G, this makes the mobile device space a very dynamic market. Apple's marketing scheme, which involves a hot product and a carefully controlled stream of details about upcoming developments, successfully generates a lot of buzz. Apple may well reach its goal of 10 million iPhones sold this year, and the iPhone will likely bring in $10 billion annually in the next five years. Even retail shortages have industry analysts speculating like mad. Rather than supply chain glitches or an intentional 2G drawdown, these appear to be the result of component shortages. With its push to develop compatibility with Microsoft Exchange and its release of a software development kit, Apple is working to counter the iPhone's image as a toy, as well as to expand its market. Perhaps the clearest sign of domination, though, is its effect on competitors. Sprint Nextel is marketing the 3G, GPS, and haptic touchscreen feedback features of Samsung's Instinct device, all areas in which Apple has been lacking. Sony Ericsson and Nokia have also announced major touchscreen products later this year, setting the stage for a pitched battle in 2009.