Since announcing the iPhone at Macworld San Francisco Apple has generated $400 million in free publicity, according to Harvard Business School professor David Yoffie, and the publicity is drawing customers into the Apple Stores.

“No other company has ever received that kind of attention for a product launch,” Yoffie told USA Today, “It's unprecedented.”

Yoffie expects the publicity from the iPhone announcement to “drive people into the Apple Stores”. He also predicts that the publicity around the iPhone will help sell more iPods and also help Apple increase its PC market share.