Comment by alkonaut
That Apple succeeded in having people pay $500 and up for a phone that was cool but frankly not very useful, was amazing.
We should remember the original iPhone was more a tech demonstrator than anything else. It had the revolutionary touch screen, yes, but you couldn't really DO that much with it. There wasn't even an app store! You still needed to buy a digital camera and a garmin GPS and so on. This was a telephone in the old sense of the word (For younger readers, "telephone" used to mean a thing you made calls with).
The fact we pay 2-3 times as much now for premium smartphones is no wonder. Now it's a PC power thing with a better camera. By the time the iPhone 3G arrived it was a marvel. It had ironed out most of the kinks of the early versions, added the GPS, App Store etc. But by then, the other dinosaurs were already dying. They murdered them with the initial versions of the iPhone, which really weren't even that impressive.
The presentation shows they were aware of what was happening. But that Nokia didn't just make their portfolio two lines (really simple cheap feature phones and really expensive all-glass smartphones) on the day after this presentation came out, is strange.
> It had the revolutionary touch screen, yes, but you couldn't really DO that much with it.
You glossed over the one killer feature of the original iPhone: It had a fully functional web browser and enough compute power to just barely run it. This was the thing that made all previous smartphones instantly obsolete. No goddamn WAP proxy. No needing 3-4 minutes to get Yahoo to render. It didn't completely trash the layout of every other page. It was an actually useful web browser.