Is it possible create a IPhone application by using java and LWUIT framework?
There appears to be a rudimentary LWUIT Microemulator in development, but the author states that this requires jailbroken iPhones. I would not rely on this for anything serious, because I doubt something based on this will ever appear on the App Store.
A better bet would be to learn Objective-C and the native APIs, or use an alternative platform like MonoTouch.