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At the CTIA Wireless trade show today, AT&T Chief Operating Officer (COO) Randall Stephenson took Apple's iPhone out for a rare public appearance during his keynote address. In fact, the few moments Stephenson spent with the device on stage was the first time the iPhone appeared in public since Steve Jobs whipped out the highly-anticipated gadget during Macworld back in January.

Somewhat surprisingly, Stephenson—the COO of the first mobile operator slated to deliver the device (in June)—said it was only the first time he held one. He said, "This is going to be a test of the true user interface capabilities of this, because this will be the first time to touch one of these...You talk about what brings ease of use into play, this is it."

And he wasn't the only person who spent the most time with the iPhone before Apple whisked it out of the convention center: That honor, according to Stephenson, went to Federal Communications Commission chairman Kevin Martin, who reportedly was the one to figure out how to use the iPhones two-finger touch interface.

 

While holding up the iPhone Stephenson opined,

Unlike with Macworld, there won't be an iPhone to ogle in a display case during CTIA.

During his speech, Stephenson said "One million people have asked us to call when this phone is available." Consumers can fill out a form and leave sign up to leave their e-mail address at both Cingular (in the process of becoming AT&T) and Apple's Web sites to be notified when the iPhone will be available.

They can't pre-order the iPhone, however; Apple and AT&T want to build up demand and make as big a splash as possible when the phone acutally starts shipping.

It is hard to believe Apple can make a bigger splash than it already has. A Harvard Business School professor reported earlier this month that the attention the iPhone has thus far received adds up to $400 million worth of free publicity.

Apple's goal is to ship 10 million iPhone's through 2008. In other words it plans to take hold one percent of the total smartphone market right out of the gate.

This inspite of how much it'll cost to buy an iPhone, which is pretty high for an average smartphone today. $499 will get you the 4 GB model and $599 the 8 GB edition with a 2-year contract.

Apple's high margins on the device leave plenty of room for prices to be lowered over time. According to market research firm iSuppli, there's a gross profit margin of nearly 50 percent with each iPhone. This means for every 4 GB iPhone sold, Apple could net approximately $253, and with the 8 GB model $318.