Beyond Components: It's All About the Software
Aside from the multi-touch display and motion sensor/accelerometer, the iPhone turns out to have little else in terms of revolutionary components. However, the integration of the software with the hardware is entirely different. The level of thought put into interface design and software has been heretofore unseen in a cell phone. And that added touch that Apple brings to the table--the same touch that sparked thousands of people to queue up for the iPhone in advance of its launch--is much harder to put a price tag to.
Photograph: Chris Manners