All these “iPhone is doomed” folks had good arguments, the original iPhone was a flawed device. On paper, the incumbent mega corporations should have been able to come up with an iPhone killer quickly, considering the resources available to them. What they missed was the inertia and the lack of agility in these big companies. They kept insisting on their current plans until it was too late. Only Google was capable of…
Apple might have genuinely murdered the entire market if they hadn’t insisted on their ridiculous exclusivity plan with AT&T. Whichever Apple exec greenlit that must surely have been an industrial saboteur because it saved 5+ other companies from ruin.
1) distribution - Americans went to the carrier store and not Best Buy for their new phone
2) financing infrastructure- they could finance, subsidize and generally hide the up front price of these devices. The market expected a $0-200 phone with contract.
So, you needed AT&T and their contract prices already assumed they were subsidizing the phone so it was no point selling unlocked, full price.
Samsung was paying mobile store reps (at AT&T, TMO etc) $50-100 PER PHONE to push Samsung ($9B marketing budget).