European settlement of Mobile, then known as Fort Louis de la Louisiane, started in 1702, at Twenty-seven Mile Bluff on the Mobile River, as the first capital of the French colony of Louisiana. It was founded by French Canadian brothers Pierre Le Moyne d'Iberville and Jean-Baptiste Le Moyne, Sieur de Bienville, establish control over France's Louisiana claims. Bienville was made governor of French Louisiana in 1701. Mobile’s Roman Catholic parish was established on 20 July 1703, by Jean-Baptiste de la Croix de Chevrières de Saint-Vallier, Bishop of Quebec. The parish was the first established on the Gulf Coast of the United States. In 1704 the ship Pélican delivered 23 French women to the colony, along with yellow fever which passengers had contracted at a stop in Havana. Though most of the "Pélican girls" recovered, numerous colonists and neighboring Native Americans died from the illness. This early period was also the occasion of the arrival of the first African slaves, transported aboard a French supply ship from Saint-Domingue. The population of the colony fluctuated over the next few years, growing to 279 persons by 1708, yet descending to 178 persons two years later due to disease.

These additional outbreaks of disease and a series of floods caused Bienville to order the town relocated several miles downriver to its present location at the confluence of the Mobile River and Mobile Bay in 1711. A new earth and palisade Fort Louis was constructed at the new site during this time. By 1712, when Antoine Crozat took over administration of the colony by royal appointment, the colony boasted a population of 400 persons. The capital of Louisiana was moved to Biloxi in 1720, leaving Mobile in the role of military and trading center. In 1723 the construction of a new brick fort with a stone foundation began and it was renamed Fort Condé in honor of Louis Henri, Duc de Bourbon and prince of Condé.

In 1763, the Treaty of Paris was signed, ending the French and Indian War. The treaty ceded Mobile and the surrounding territory to the Kingdom of Great Britain, and it was made a part of the expanded British West Florida colony. The British changed the name of Fort Condé to Fort Charlotte, after Charlotte of Mecklenburg-Strelitz, King George III's queen.

The British were eager not to lose any useful inhabitants and promised religious tolerance to the French colonists, ultimately 112 French Mobilians remained in the colony. The first permanent Jewish presence in Mobile began in 1763 as a result of the new religious tolerance. Jews had not been allowed to officially reside in colonial French Louisiana due to the Code Noir, a decree passed by France's King Louis XIV in 1685 that forbade the exercise of any religion other than Roman Catholicism, and ordered all Jews out of France's colonies. Most of these colonial era Jews in Mobile were merchants and traders, and added to the commercial development of Mobile. In 1766 the population was estimated to be 860, though the town's borders were smaller than they had been during the French colonial efforts. During the American Revolutionary War, West Florida and Mobile became a refuge for loyalists fleeing the other colonies.

The Spanish captured Mobile during the Battle of Fort Charlotte in 1780. They wished to eliminate any British threat to their Louisiana colony, which they had received from France in 1763s Treaty of Paris. Their actions were also condoned by the revolting American colonies due to the fact that West Florida, for the most part, remained loyal to the British Crown. The fort was renamed Fortaleza Carlota, with the Spanish holding Mobile as a part of Spanish West Florida until 1813, when it was seized by the U.S. General James Wilkinson during the War of 1812.

By the time Mobile was included in the Mississippi Territory in 1813, the population had dwindled to roughly 300 people. The city was included in the Alabama Territory in 1817, after Mississippi gained statehood. Alabama was granted statehood in 1819; Mobile's population had increased to 809 by that time. As the river frontage areas of Alabama and Mississippi were settled by farmers and the plantation economy became established, Mobile's population exploded. It came to be settled by merchants, attorneys, mechanics, doctors and others seeking to capitalize on trade with these upriver areas. Mobile was well situated for trade, as its location tied it to a river system that served as the principal navigational access for most of Alabama and a large part of Mississippi. By 1822 the city's population was 2800.

From the 1830s onward, Mobile expanded into a city of commerce with a primary focus on the cotton trade. The waterfront was developed with wharves, terminal facilities, and fireproof brick warehouses. The exports of cotton grew in proportion to the amounts being produced in the Black Belt; by 1840 Mobile was second only to New Orleans in cotton exports in the nation. With the economy so focused on one crop, Mobile's fortunes were always tied to those of cotton, and the city weathered many financial crises. Though Mobile had a relatively small slave-owning population compared to the inland plantation areas, it was the slave-trading center of the state until surpassed by Montgomery in the 1850s. By 1853, there were fifty Jewish families living in Mobile, including Philp Phillips,an attorney who was elected to the Alabama State Legislature and then to the United States Congress. By 1860 Mobile's population within the city limits had reached 29,258 people; it was the 27th largest city in the United States and 4th largest in what would soon be the Confederate States of America. The free population in the whole of Mobile County, including the city, consisted of 29,754 citizens, of which only 1195 were black. Additionally, 1785 slave owners held 11,376 slaves, for a total county population of 41,130 people.

The Tacon-Barfield Mansion (built c. 1896) on Government Street.
During the American Civil War, Mobile was a Confederate city. The first submarine to successfully sink an enemy ship, the H. L. Hunley, was built in Mobile. One of the most famous naval engagements of the war was the Battle of Mobile Bay, resulting in the Union taking possession of Mobile Bay on 5 August 1864. On 12 April 1865, 3 days after the surrender of Robert E. Lee at Appomattox Courthouse, the city of Mobile surrendered to the Union army to avoid destruction following the Union victories at the Battle of Spanish Fort and the Battle of Fort Blakely. Ironically, on 25 May 1865, the city suffered loss when some three hundred people died as a result of an explosion at a federal ammunition depot on Beauregard Street. The explosion left a 30-foot (9 m) deep hole at the depot's location, sunk ships docked on the Mobile River, and the resulting fires destroyed the northern portion of the city.

Federal Reconstruction in Mobile began after the Civil War and effectively ended in 1874 when the local Democrats gained control of the city government. The last quarter of the 19th century was a time of economic depression and municipal insolvency for Mobile. One example can be provided by the value of Mobile's exports during this period of depression. The value of exports leaving the city fell from $9 million in 1878 to $3 million in 1882.

The turn of the century brought the Progressive Era to Mobile and saw Mobile's economic structure evolve along with a significant increase in population. The population increased from around 40,000 in 1900 to 60,000 by 1920. During this time the city received $3 million in federal grants for harbor improvements to deepen the shipping channels in the harbor. During and after World War I, manufacturing became increasingly vital to Mobile's economic health, with shipbuilding and steel production being two of the most important. During this time, social justice and race relations in Mobile worsened, however. In 1902 the city government passed Mobile's first segregation ordinance, one that segregated the city streetcars. It legislated what had been informal practice, enforced by convention. Mobile's African-American population responded to this with a two-month boycott, but it did not change the law. After this, Mobile's de facto segregation was increasingly replaced with legislated segregation as whites imposed Jim Crow laws to maintain dominance.

World War II led to a massive military effort causing a considerable increase in Mobile's population, largely due to the massive influx of workers coming to Mobile to work in the shipyards and at the Brookley Army Air Field. Between 1940 and 1943, more than 89,000 people moved into Mobile to work for war effort industries. Mobile was one of eighteen U.S. cities producing Liberty ships. Its Alabama Drydock and Shipbuilding Company supported the war effort by producing ships faster than the Axis powers could sink them. Gulf Shipbuilding Corporation, a subsidiary of Waterman Steamship Corporation, focused on building freighters, Fletcher class destroyers, and minesweepers.

The years after World War II brought about changes in Mobile's social structure and economy. Instead of shipbuilding being a primary economic force, the paper and chemical industries began to expand, and most of the old military bases were converted to civilian uses.

After World War II and their sacrifices in service, African Americans stepped up their efforts to achieve equal rights and social justice. Some residents of Mobile had considered the city to be tolerant and racially accommodating compared to other cities in the South, especially as the police force and one local college became integrated in the 1950s. Buses and lunch counters were voluntarily desegregated by the early 1960s. Mobile's African-American citizens were not as content with the status quo as such residents believed. In 1963 three African-American students brought a case against the Mobile County School Board for being denied admission to Murphy High School. The court ordered that the three students be admitted to Murphy for the 1964 school year, leading to the desegregation of Mobile County's school system. The Civil Rights Movement led to the end of legal racial segregation with passage of the Civil Rights Act of 1964.

In the late 1960s, Mobile's economy was dealt a blow with the closing of Brookley Air Force Base. This and other factors ushered in a period of economic depression that lasted through the 1970s. Beginning in the late 1980s, the new mayor, Mike Dow, and the city council began an effort termed the "String of Pearls Initiative" to make Mobile into a competitive city. The city initiated construction of numerous new facilities and projects, and the restoration of hundreds of historic downtown buildings and homes. Violent crime was reduced, and city and county leaders attracted new business ventures to the area. The effort continues into the present under the current mayor, Sam Jones, and city council. Shipbuilding began to make a major comeback in Mobile in 1999 with the founding of Austal USA.

Apple has filed more than 200 patents related to the technology behind the iPhone.

LG Electronics claimed the iPhone's design was copied from the LG Prada. Woo-Young Kwak, head of LG Mobile Handset R&D Center, said at a press conference, “We consider that Apple copied Prada phone after the design was unveiled when it was presented in the iF Design Award and won the prize in September 2006.”
On September 3, 1993, Infogear filed for the U.S. trademark "I PHONE" and on March 20, 1996 applied for the trademark "IPhone". "I Phone" was registered in March 1998, and "IPhone" was registered in 1999. Since then, the I PHONE mark had been abandoned. Infogear's trademarks cover "communications terminals comprising computer hardware and software providing integrated telephone, data communications and personal computer functions" (1993 filing), and "computer hardware and software for providing integrated telephone communication with computerized global information networks" (1996 filing). Infogear released a telephone with an integrated web browser under the name iPhone in 1998. In 2000, Infogear won an infringement claim against the owners of the iphones.com domain name. In June 2000, Cisco Systems acquired Infogear, including the iPhone trademark. On December 18, 2006 they released a range of re-branded Voice over IP (VoIP) sets under the name iPhone.
In October 2002, Apple applied for the "iPhone" trademark in the United Kingdom, Australia, Singapore, and the European Union. A Canadian application followed in October 2004 and a New Zealand application in September 2006. As of October 2006 only the Singapore and Australian applications had been granted. In September 2006, a company called Ocean Telecom Services applied for an "iPhone" trademark in the United States, United Kingdom and Hong Kong, following a filing in Trinidad and Tobago. As the Ocean Telecom trademark applications use exactly the same wording as Apple's New Zealand application, it is assumed that Ocean Telecom is applying on behalf of Apple. The Canadian application was opposed in August 2005 by a Canadian company called Comwave who themselves applied for the trademark three months later. Comwave have been selling VoIP devices called iPhone since 2004.

Shortly after Steve Jobs' January 9, 2007 announcement that Apple would be selling a product called iPhone in June 2007, Cisco issued a statement that it had been negotiating trademark licensing with Apple and expected Apple to agree to the final documents that had been submitted the night before. On January 10, 2007 Cisco announced it had filed a lawsuit against Apple over the infringement of the trademark iPhone, seeking an injunction in federal court to prohibit Apple from using the name. More recently, Cisco claimed that the trademark lawsuit was a "minor skirmish" that was not about money, but about interoperability.

On February 2, 2007, Apple and Cisco announced that they had agreed to temporarily suspend litigation while they hold settlement talks, and subsequently announced on February 20, 2007 that they had reached an agreement. Both companies will be allowed to use the "iPhone" name in exchange for "exploring interoperability" between their security, consumer, and business communications products.
The iPhone has also inspired several leading high-tech clones, driving both Apple's popularity and consumer willingness to upgrade iPhones quickly.

The iPhone normally prevents access to its media player and web features unless it has also been activated as a phone with an authorized carrier. On July 3, 2007, Jon Lech Johansen reported on his blog that he had successfully bypassed this requirement and unlocked the iPhone's other features with a combination of custom software and modification of the iTunes binary. He published the software and offsets for others to use.

Unlike the original, the iPhone 3G must be activated in the store in most countries. This makes the iPhone 3G more difficult, but not impossible, to hack. The need for in-store activation, as well as the huge number of first-generation iPhone and iPod Touch users upgrading to iPhone OS 2.0, caused a worldwide overload of Apple's servers on July 11, 2008, the day on which both the iPhone 3G and iPhone OS 2.0 updates as well as MobileMe were released. After the update, devices were required to connect to Apple's servers to authenticate the update, causing many devices to be temporarily unusable. Apple avoided this by releasing the 3.0 software two days before the iPhone 3GS.

Users on the O2 network in the United Kingdom, however, can buy the phone online and activate it via iTunes as with the previous model. Even where not required, vendors usually offer activation for the buyer's convenience. In the U.S., Apple has begun to offer free shipping on both the iPhone 3G and the iPhone 3GS (when available), reversing the in-store activation requirement. Best Buy and Wal-Mart will also sell the iPhone.

The majority of iPhones are sold with a SIM lock, which restricts the use of the phone with one particular carrier, a common practice with subsidized GSM phones. Unlike most GSM phones however, the phone cannot be officially unlocked via inputting a code. The locked/unlocked state is maintained on Apple's servers per IMEI and is set when the iPhone is activated.

While the iPhone was initially sold on the AT&T network only with a SIM lock in place, various hackers have found methods to "unlock" the phone from a specific network. Although AT&T is the only authorized iPhone carrier in the United States, unlocked iPhones can be used with an unauthorized carrier after unlocking. More than a quarter of the original iPhones sold in the United States were not registered with AT&T. Apple speculates that they were likely shipped overseas and unlocked, a lucrative market prior to the iPhone 3G's worldwide release. Unlocking iPhones in the U.S. is done because many would-be users dislike switching carriers or consider AT&T's monthly fees too expensive.

On November 21, 2007, T-Mobile in Germany announced it would sell the phone unlocked and without a T-Mobile contract, caused by a preliminary injunction against T-Mobile put in place by their competitor, Vodafone. On December 4, 2007, a German court decided to grant T-Mobile exclusive rights to sell the iPhone with SIM lock, overturning the temporary injunction. In addition, T-Mobile will voluntarily offer to unlock customers' iPhone after the contract expires.

AT&T has stated that the "iPhone cannot be unlocked, even if you are out of contract". On March 26, 2009 AT&T in the United States began selling the iPhone without a contract, though still SIM-locked to their network. Such iPhone units are often twice as expensive as those with contracts, because Apple and AT&T lose the deferred income. Vendors in Hong Kong, Italy, New Zealand, and Russia (among others) sell iPhones not locked to any carrier. In Australia, four major carriers (Three, Optus, Telstra, and Vodafone) sell locked phones, but will unlock upon request, in addition to Apple selling unlocked iPhones directly.