This is a less well thought version of Marc Andreessen's Software eats the World essay[1]. For devices like phones and tablets the platform (aka software+services) matters a lot more than the hardware.

Sure, there are a few exceptions: gaming requires specific hardware, the connected fitness market likes Ant+, Bluetooth 3.0 or dongles, etc. But the general case is that the software matters, not the hardware.

[1] http://online.wsj.com/article/SB1000142405311190348090457651...