Which is a perfectly reasonable reaction, the first iPhone was an iPod with a sub-par Browser and a bad mobile phone, in a device which barely managed to last one day on a charge.
Others also had sub-par browsers, comparable/more versatile Media Players and MUCH better phones, running a week or longer on a single charge.
The way Apple destroyed the competition was by creating so much hype around their product that they could demand concessions from carriers, most of all revenue-share (and a scheme where the ~1000USD device-price included marketing budget the carrier could then "consume" from Apple), two moves which decoupled Apple from Market-pressure and created an incredible influx of money into their R&D.