Don't forget that Microsoft was iterating on Windows Mobile at the time that the iPhone released. IMO, Microsoft (and other handset makers) focused a lot of th

Don't forget that Microsoft was iterating on Windows Mobile at the time that the iPhone released. IMO, Microsoft (and other handset makers) focused a lot of their energy on the enterprise market. Looking at screenshots of early handhelds show productivity as one of the "bullet points on the box." Apple had the luxury of approaching the phone market from the other direction. They've spent several years making the iPod, that a consumer-oriented phone was a natural evolution of that. They also knew how to sell it.