Yes, Apple rolled out a , adding 3G networking capabilities and built-in GPS to the iPhone. But the real story was the worldwide spread of the iPhone prompted by the 3G’s release. At this time last year, the iPhone was available in four countries; now, you can buy one in more than 70. And the big target—China—is still in Apple’s sights.

1. The App Store

I can hear the “What is this, iPhoneworld” e-mails being typed now. But it’s undeniable that mobile apps were where the action was in 2008. Developers flocked to build iPhone apps—10,000 of them by Apple’s count—and consumers rushed to download them, passing the in early December. Were there complaints about how the App store was organized and the confusing rules Apple set up to approve native iPhone programs. Sure? But there was also a sense of excitement about establishing a new market, exploiting a new platform, and pushing the iPhone in new directions. Look for that excitement to carry us into 2009.

Honorable mentions: CS4 ships, Goodbye Bill Gates, the Microsoft-Yahoo merger that wasn’t, iTunes movie rentals, Google makes a phone.