Comment by joe_the_user

I think the presentation was enough to show they knew they were in trouble.

But it also showed they didn't actually understand the significance of what was happening.

They thought essentially "all this fancy stuff will redefine 'cool', the 'high end'". They imagined a mid-range phone with special email features could slow the iPhone - ie, they imagined phone makers dribbling out features per dollar. But the real lesson of the iPhone was "the 'phone' is going to become a general purpose computing device with multiple connections to the world and hardware features controlled by general purpose software".