I don't buy that, despite how much I hear it. there are a few situations I'd agree that if you don't have the first-to-market advantage you're basically fucked (social networking being a prime one, any system where network effect dominates). And while people cite apps as being the "network-effect-esque" factor in this case, I'm not sure I buy that. Looking at data of how many people NEVER use a single app, how many domains/specialties could use a "professional" phone without a broad app base, how many niches are untapped (constant laments from myself and others about how there are no small, robust, non-feature-obsessed "working mans smartphone") I truly believe there are ways into the market that are just fine to grow a sufficiently profitable business if you're simply OK with not trying to be the next iPhone RIGHT NOW. Maybe this ties back into the whole "vc doesn't want companies that _just work_, they want growth" mindset, but I fundamentally reject that as a philosophy so perhaps I'll never see eye to eye with the decision makers in this case.
(to clarify something for responders, all of the above is aligned as well with the implicit statement that you can't let investment slack; because then you lose your grassroots/what little mindshare you could have had to grow, take the above as "why I think a company should continue investment even in the current scenario")