Good analysis.

In marketing, a "competitor" is not just somebody else doing a similar thing; one form of competition is something entirely different that you might spend your money or time instead (a "substitute").

Many business plans ignore substitutes and only focus on similar competitive offerings.

Smartphones are substitutes for a lot of things: playing football with a friend; human ad-hoc conversation at a bus stop; playing Candy Crush instead of reading newspapers on your morning commute; entertaining yourself and your date at a romantic dinner.