No App Store
Since the iPhone had such a great web browser, Apple’s original strategy for the iPhone was to rely on web apps, so with the first iPhone there was no legitimate way to install third-party apps at all, nor could you even rearrange the home screen. What you saw was what you got.
However, web apps never really took off, and by the following year, Apple had conceded that wasn’t going to work out. The App Store debuted with a big splash in iPhone Software 2.0 (it wasn’t called “iOS” until 2010) and the iPhone 3G. The original iPhone also benefitted from the App Store with that software update.