Like every other geek in the bay, I eagerly followed the SteveNote on Monday, and I’ve gotta say, the new iPhone is quite a device.

As of right now I’m not terribly impressed with the software. I think android’s still winning that race, but I don’t think that’s where Apple’s really competing.

What caught me was the hardware. The phone itself is REALLY impressive. I’m not talking necessarily about the specs, which Apple’s always a little cagey about and which, frankly, matter a whole lot less than a number of other factors. I’m talking about the physical hardware they built.

Apple invented a new form of laminated glass, a new steel alloy, new manufacturing techniques, a new LCD screen, a new processor, and I’d put good money that neither those cameras nor that gyroscope(!) are off the shelf. The battery design is their own, and I suspect given the relative performance of the Apple touchscreen that Apple had a good hand in its design and manufacture as well. Apple has rapidly moved from a company that makes exceptional software to a company that’s absolutely obsessive about their hardware, and it shows in a big way with the latest iPhone.

Apple’s known for its relentless perfectionism, and it seems like the company realized they reached the limit of what off-the-shelf components could deliver. They’re investing heavily in manufacturing, materials science, and design, and they’re getting a lot of mileage out of it – the race to dethrone the iPhone isn’t about software anymore, which is good for Apple, because software’s cheap. Apple’s no longer a software company, or at least that’s not their competitive advantage – they’ve morphed into a class-leading hardware company, and I have to say, I’m impressed.

And more than a bit envious.