I agree with everything you said. But just as important as the technical leap was the business model improvement. Before the iPhone, at least in the US, carriers dictated what functions could and could not be present in the phones. The video offerings were nothing but short snippets of content offered at steep prices from the carriers. Phone manufacturers considered the carriers to be their real customers, and the carriers wanted to make sure that every phone feature was a money stream for them. Apple was the first manufacturer with enough clout to get a carrier (Cingular) to offer a smartphone that was not crippled by the carrier. Once the iPhone became popular, it was no longer possible for carriers to hobble the smartphones they sold, in order to nickle-and-dime their customers.