People like to point out how great the iPhone was, therefore, that's why it succeeded but the brilliance of the phone was the tie to the phone companies and the continued improvement by apple.<p>Magic's big problem was that it did not have a revenue model. Engineers like to point to great gadgets and products but if the products can't be monetized then don't expect them to be around for long.<p>Steves brilliance was that he was able to monetize a gadget from the start. The first iPhones were good but they would have failed had they not been paired with an affordable service. Had people had to pay for the phone first then the iPhone would have failed.