iFone is an existing telecommunications company in Mexico. They registered the trademark in 2003. iPhone sounds just like iFone when said aloud. This was a problem, and Apple didn’t like it.
According to reports, Apple filed legal action to get iFone to stop using the name in order to avoid customer confusion. A year after the handset launched in Mexico, Apple tried to gain control of the name. It didn’t work out for them.
Sorry, Apple. The company seems as if it was already established, and iFone may be a known brand in Mexico. It’s tough to win that one several years after they’ve already filed the name.