The lateness is not that important since phone contracts are up in about 2 years and at the time, people shop for new phones and usually aim for the coolest one as their new phone. Phone markets renew every couple of years but clearly the iphone keeps beating the value(how many iphone's generation 1 do you see on the street?). The iphone was even late to the game but that didn't stop it from taking away the coolness and market of the motorola Razr which everybody wanted and had back then.

Another factor is the Windows phone, Android and iPhone have about the same initial and per month cost. Roughly the same price but All 3 give very different values back in terms of apps,feature,ease of use. Coping with the downsides or nuances is also a 2 year commitment so unless an option is clearly way ,way better, people will stick with an iPhone or go back.

With pcs it's a different ballpark. A macbook feels nicer than a generic Acer notebook, but one costs $1,500 and the other $499. The phones are all around $199 and plans are about 70 bucks a month. Even if the phone is "free" the per month payment is the same.

Also the iPhone sets a standard of experience which still is unmatched. If I drove a mercedez, then switched to an Acura and didn't like it as much, it doesn't mean either is bad. Acura is awesome, but I might miss the feeling,driving, status,smell, etc and hold the Acura up the Mercedez standards. Windows phone is stuck in an unconfortable situation where it doesn't give way greater value to an iphone user but doesn't cost way less either to make it into other emerging markets and grab marketshare from somewhere else.