People don't seem to remember that the iPhone really was a pretty crappy phone on launch day, in a lot of ways. It crashed constantly, didn't do a lot of things that other phones already did, and had audio-quality problems. In the parlance of the times, it wasn't a smartphone, it was an expensive feature phone.
What turned the iPhone into a serious product, from my own point of view, was the regular stream of updates and bug fixes that Apple provided. I didn't like my iPhone very much at first, but it just kept getting better, through no effort or expense on my part. I wasn't accustomed to buying electronic devices that magically got better over time. They won at least one loyal customer with that approach, and influenced the way I do business today.