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I agree with "veteran of the biz". software beat hardware any day of the week. But Steve Jobs was absolutely correct when he quoted Alan Kay (en.wikipedia.org/wiki/...) who said some 30 years ago at the introduction of the iPhone:
Apr 08 10:35 am
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All Comments by tommylee »Who Will Win the Smartphone Wars? [View article]
"People who are really serious about software should make their own hardware".
Another Kay quote exemplifies what makes Apple stand out above the "smartphone" crowd:
"The best way to predict the future is to invent it."
My prediction that will blow all other competitors out of the market:
"OSX snowleopard introducing: "On the fly language translation into 20 some languages". I may start out as a bit crude but eventually will set the new standards in smartphone technology...