Incorrect. There is a third way: reinvent the smart phone.
Back in 1899 the Commissioner of US patent office stated that "everything that can be invented has been invented." No doubt there are plenty of people thinking the same thing about the smart phones we have today. i.e., every feature that can be added has already been added. They are wrong.
Keep in mind that right before Steve Jobs unveiled the iPhone people thought the same thing about the mobile phones we had then. Then Jobs reinvented the phone. Can Apple do it again?