For better or worse the iPhone hit the market today 16 years ago changing the world forever.
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You seem to have a different remembered version of history. They very first iPhone had Wifi, and could do loads of things other devices couldn't, like play video, browse the web using a real full browser, and IMO way better typing than any physical keyboard.
You're acting like iPhone's lack of an App store on day one put it at a disadvantage, but there weren't exactly a lot of other options. The app store was released only a year later, and you could do loads from the browser before that.
Better typing than a physical keyboard? Really?