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Yes.
This article Stereophile: Wadia Announces Launch of iPod Dock with S/PDIF Output from a year ago says "iPhone: Supports component video out and enables digital audio out while still allowing the iPod click wheel interface to function normally. However, when an iPhone is docked in the iTransport, it will state that the accessory is not designed for the iPhone and will query whether or not the user wants to switch into "airplane mode" (essentially switching off the cell phone). Since the iTransport does work with the iPhone in either mode, either answer is appropriate."
Unless the article is wrong. Of course, Apple could have put a SPDIF on the iPhone or iPod for about $1, but then they couldn't charge Wadia licensing fees for Apple's proprietary digital output format which must then be converted to SPDIF, in a large $350 device. Now, with the gPhone, first of all there will eventually be more than 2 to choose from, and with their embracing open standards maybe we'll get lucky and get one with SPDIF. And .flac not .alac (another proprietary standard, but then Apple never promised not to be evil...)
This article Stereophile: Wadia Announces Launch of iPod Dock with S/PDIF Output from a year ago says "iPhone: Supports component video out and enables digital audio out while still allowing the iPod click wheel interface to function normally. However, when an iPhone is docked in the iTransport, it will state that the accessory is not designed for the iPhone and will query whether or not the user wants to switch into "airplane mode" (essentially switching off the cell phone). Since the iTransport does work with the iPhone in either mode, either answer is appropriate."
Unless the article is wrong. Of course, Apple could have put a SPDIF on the iPhone or iPod for about $1, but then they couldn't charge Wadia licensing fees for Apple's proprietary digital output format which must then be converted to SPDIF, in a large $350 device. Now, with the gPhone, first of all there will eventually be more than 2 to choose from, and with their embracing open standards maybe we'll get lucky and get one with SPDIF. And .flac not .alac (another proprietary standard, but then Apple never promised not to be evil...)
