"Cisco entered into negotiations with Apple in good faith after Apple repeatedly asked permission to use Cisco's iPhone name," said Mark Chandler, senior vice president and general counsel for Cisco. "There is no doubt that Apple's new phone is very exciting, but they should not be using our trademark without our permission."
Brand protection? Strong arming? Probably a little bit of both, but ultimately I imagine that Apple will try to license the name from them or seek to purchase it outright.