According to the advert "all the parts of the internet are on the iPhone". However, the ASA ruled the claim was misleading because the Apple's handset doesn't support Flash or Java, which forms part of a number of web pages.
The iPhone uses the Safari browser to access the web. However many web pages use proprietary software such as Flash and Java to display graphics and animations and Apple chose not to enable them on the device. As a result, some web pages may look different on the iPhone than when viewed with other browsers.
Apple defended its claim by saying the statement referred to the availability of web pages, rather than their specific appearance.
"We concluded that the ad gave a misleading impression of the internet capabilities of the iPhone, because Apple had not explained the limitations of browsing the web on the iPhone compared with a PC," said the ASA in its ruling.
The ASA said the advert could not be broadcast in its current form. Apple declined to comment.