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No, they didn't have to. The CPU speeds, storage and screens existed years before the iPhone launched. The iPhone did have a capacitive touch screen, but that wasn't exactly new, bleeding edge technology.

Three years earlier in 2005, the N770 had a bigger higher DPI screen than the iPhone, HTC had phones with the same CPU speed.

But none of those devices had software specially made for finger touch with a capacitive screen. They didn't suck because the technology didn't exist, they sucked because other companies didn't see further ahead than the existing, navigation button / stylus driven interfaces that had existed for 10 years prior.

If you need further proof, just look at the time it has taken Nokia, RIM and others to respond to the iPhone. It took _years_. If technology was the limiting factor, you'd think they would be just as aware of technological developments as Apple was, and have similar devices to the iPhone lined up and ready to go by 2007?



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