This needs a dose of cynicism I think. The success of the iPhone in 2007 really wasn't driven by hardware capability (except arguably the capacitative touch screen). Even then, other phones had faster processors, more memory, and equivalent GPUs. Apple won because it invented new usage models, not because it drove its designers to "show off what's possible in" 2007. The stuff this is talking about is just eye candy.…
It was a bit of both. The original iPhone wasn't a hardware revolution, but it was an OS revolution. It was the first time anyone put an OS on a phone that had a blazing fast graphics layer. Touchscreen phones existed before then, but because of platform performance, was always of the "poke, wait, stuff magically appears, poke, wait, stuff magically appears..." model. Apple didn't just invent new usage models, they i…
The other thing that iPhone had going for it was the iTunes integration that would save you from having to buy an iPod. This brought a lot of monetary value.
For the rest, I remember during the first iPhone reveal thinking it was a more polished, better funded version of the openMoko phone. ( https://www.google.ca/search?q=openmoko&safe=off&source=lnms... )
openMoko was an open source, volunteer made project. One thing openMoko had for it was their plan for promoting third party native apps from the get go, whereas Apple blocked them for almost a year.
In a 2006 article, a few months prior to the iPhone reveal we get about openMoko:
"The Neo1973 is based on a Samsung S3C2410 SoC (system-on-chip) application processor, powered by an ARM9 core. It will have 128MB of RAM, and 64MB of flash, along with an upgradable 64MB MicroSD card.
Typical of Chinese phone designs, the Neo1973 sports a touchscreen, rather than a keypad -- in this case, an ultra-high resolution 2.8-inch VGA (640 x 480) touchscreen. "Maps look stunning on this screen," Moss-Pultz said.
The phone features an A-GPS (assisted GPS) receiver module connected to the application processor via a pair of UARTs. The commercial module has a closed design, but the API is apparently open.
Similarly, the phone's quad-band GSM/GPRS module, built by FIC, runs the proprietary Nucleus OS on a Texas Instruments baseband powered by an ARM7 core. It communicates with Linux over a serial port, using standard "AT" modem commands.
The Neo1973 will charge when connected to a PC via USB. It will also support USB network emulation, and will be capable of routing a connected PC to the Internet, via its GPRS data connection. [...] Moss-Pultz adds, "Applications are the ringtones of the future." [...] As for additional software components, Moss-Pultz admits, "Quite a lot is there, and quite a lot is not there. We're hoping to change this." In addition to a dialer, phonebook, media player, and application manager, the stack will likely include the Minimo browser [...] He adds, "Mobile phones are the PCs of the 21st century, in terms of processing power and broadband network access. "