According to Wikipedia, over 200MM people had 3G phones before the iPhone even launched[1]. It wasn't for another year that Apple introduced the iPhone 3G.
Whether or not Apple wins or loses on specs (cf. the "I don't care" bear), they're winning big on overall experience, mindshare and ecosystem. Arguments about who has the best GPU misses the point when you can only play the newest, hottest games (or whatever) on the iPhone.
It's sort of like the argument about the Wii vs. the X360 and PS3 or the DS vs. the PSP. Who cares what the specs? The apps are driving the platform.
Whether or not Apple wins or loses on specs (cf. the "I don't care" bear), they're winning big on overall experience, mindshare and ecosystem. Arguments about who has the best GPU misses the point when you can only play the newest, hottest games (or whatever) on the iPhone.
It's sort of like the argument about the Wii vs. the X360 and PS3 or the DS vs. the PSP. Who cares what the specs? The apps are driving the platform.
[1] http://en.wikipedia.org/wiki/3G#History