iPhone Suits Up: Mixed Reactions

But American Technology Group analyst Shaw Wu said that Apple's adding of support for Microsoft Exchange will plug a "key weakness" that has kept the iPhone from gaining a larger piece of the corporate market since its debut last June 29.

"We believe Apple's implementation of ActiveSynce is superior to existing ActiveSync implementations out there," Wu said.

A beta version of the new software package is available now, with the full version set for release as a free download in late June. Apple Chief Executive Steve Jobs said developers will be able to join the iPhone development program for a $99 fee, and will keep 70 percent of all sales of applications developed for the iPhone.