|1st generation iPhone and a Blackberry|
Blackberry believed that their loyal business customers would stay with them, because of its secure messaging and push email functionality. President Obama was even an avid user. They believed that many people preferred a real (if small) keyboard to the iPhone's virtual one. They were wrong and they responded by eventually releasing Blackberries without a real keyboard and updating their operating system to support apps. But they'd missed the point. As I've mentioned several times before it's not about the technology, it's about the services the device offers. The iPhone is a platform that offers users access to music, their photos, games, books, the web and which now increasingly integrates with their other computers, TV and the cloud. Quite simply the Blackberry doesn't - at least not nearly as well. Amazon understand this, hence the Kindle and their Prime service. Companies in 2013 that focus on the technology at the expense of services will fail.