What was the size of the smartphone market? I'd guess it wasn't that big either, certainly it isn't anywhere near present-day numbers. And yes, I am differentiating between "smartphone" and "cell phone" market. The former was small, the latter was huge.
> Well, it was a very fragmented market focused only on professionals. It was never aimed to consumers (a big mistake).
You could say the same for RIM, who was never that interested in building a consumer phone. Many mistakes were made by all incumbents..
The lack of native data connectivity made PDAs deal with the continually nasty and ever under-estimated problem of sync. With iPhoneOS v1, Apple matched what Palm had to offer - an iPod touch was almost as good as a Palm PDA, an iPhone better than a Treo. With iOS2 and ActiveSync, it blew away it's competition.
The iPhone (and really, the iPhone 3G for me) is when prices started to become reasonable.. nowadays, you can get decent data plans with (almost) everyone here.