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M68AP
This is the original iPhone. It was released on June 29, 2007 with a price tag of $499 for the 4GB and $599 for the 8GB. A $200 price drop followed the release of the phone. Later, the 4GB model was discontinued, with the 8GB model filling it's place and a new 16GB model filling the high end.
Internals
See: M68ap (Internals)[1]
Baseband
The iPhone uses the S-Gold 2 baseband chip
Application Processor
It makes use of the S5L8900 application processor. At the time, the iPhone, iPhone 3G, and iPod Touch all use this same processor.
References
[1] iPhone semiconductor components