Thought: what would we gain from a phone market without the iPhone? You'd be able to buy a phone with a stylus if you wanted (some people do want one) and a phone you can use with gloves or wet hands. Keyboards would be more common (rather than being a very small niche). There might be more mainstream hardware variety, rather than flagship phones all looking exactly alike. We might have seen true pocket computers (this is the road Palm and Windows Mobile were going down) instead of pocket devices. We might not have a concept of "jailbreaking", because smartphones prior to the iPhone were generally not restricted so.
As for the iTunes store, ever heard of Rhapsody? It launched in 2001. iTunes store was launched in 2003.
Wonderful reply. Apple won the smartphone market, and certainly raised overall ease-of-use standards in the market, but that doesn't mean that smartphones would have been objectively worse otherwise - just different, possibly better or worse. We would possibly have much more freedom in terms of app stores.
The fact that Apple stamped its mark on the global phone market and is making huge profits is absolutely not an inherent reason to be thankful for them. They won most of the market and now enjoy a massive network effect advantage (larger market => more developers developing for iOS => improved and cheaper app offerings => larger market); why respect them for doing the equivalent of what Facebook did in the social networking arena (make the most popular UX in the market)?
To be sure, a few companies deserve actual respect - for me, those are the companies that treat their customers well, are highly socially responsible, encourage openness, and play fair with all. Even better if they go beyond immediate profit goals to genuinely drive innovation. Most companies just want to make a buck by winning the market - nothing wrong with that, but that doesn't inherently deserve respect.
Before the iPhone, the smartphone was still a very niche device though. The closest thing to mainstream is the BlackBerry, but it was mostly used for texting and email. There was already a marketplace, but the user experience was horrible. The web was barely usable. Thing is, everything has been in that state for quite a while. The smartphone market had a chance to evolve, but it wasn't really going anywhere.
So we went from having a very low end computer in our pocket in a market that appealed to the people who really needed a smartphone to having a powerful toy of questionable real value to the original smartphone audience.
I'm not saying the iPhone didn't change the market. I am saying I don't believe it changed it for the better, where "better" means improved for the original smartphone owners. Look at the casualties from the iPhone: Blackberry, Windows Mobile, Palm, Nokia. 4 devices made for business, durable and professional.
Has there been any more substantial advancement in the smartphone market in the 6 years the iPhone has been on the market than in the 7 years between Windows Mobile and the release of the iPhone? Sure the iPhone changed the market... half a decade ago. And ever since, all its influence has brought us is more of the same.
Besides, it's a false dichotomy. The best products don't always win, the most popular products win. Popularity can be influenced by marketing and agitprop. And what's better for one market isn't what's better for another market. The problem right now is that the smartphone market only caters to one audience. You can't say that's "better".
As for the iTunes store, ever heard of Rhapsody? It launched in 2001. iTunes store was launched in 2003.