One of the limitations of the iPhone and it's existing software is the lack of a search tool for contacts. It appears this could be on the horizon with the release of iPhone firmware 2.0.

According to EngadgetMobile, there is a a magnifying glass coupled with a contacts search feature in the enterprise version of firmware 2.0. It's unclear if this will also be available in the pedestrian version of contacts, but one can only hope. We presume that typing the first few letters would generate a search of contact matches. Apple is expected to release firmware version 2.0 in June at the World Wide Developer Conference.

Source: EngadgetMobile Photo credit: EngadgetMobile