From that update it sounds like the BeatThang is in trouble. You don't swap major hardware components at the last minute without severe delays. The other troubling thing is that you don't distract yourself from your first MAJOR "Game Changing" hardware launch with an iPhone application.
I don't know if these guys are having financial problems (and need quick cash from an iPhone app), are being mismanaged or have run into severe technical problems. But that update is an indication that things are going very poorly.
BTW - Note to BeatKangz. I don't know if you believe your own hype, but statements like, "we just signed a deal with Apple to develop iPhone applications" are embarassing to all of us. Anyone can do this by paying $99 bucks and signing the iPhone Developer Agreement
http://developer.apple.com/iphone/program/. Be careful though, because all of those BeatMaker customers
http://www.intua.net/products.html are going to rate your app based upon the already high bar set by Intua.
Sometimes I still laugh out loud about the beat kangz and that time some English dude hacked the Akai marketing website and stole a bunch of pictures of the Ren before it was released.