Earlier quoted context omitted.
iphone is the best counter argument to this. when released it was 1000x more functional and 1000x better looking than any phone available
That's revisionist. People tend to forget that when the iphone was released it had no appstore and Apple was telling people to develop webapps. This was less functional than existing offerings on the market, but it sure looked and felt better.
Blackberries were good at email, but otherwise they lost to Apple badly.