The more I look into this iphone the more I see that Apple isn't after the cell phone market but after the tablet PC market, at the size of a cell phone. So really, Jobs and his people aren't re-designing the cell phone but the laptop computer. Once they have a stable platform I bet ya they are going to take google for a wild ride and start a content and ad space war.
What hasn't been announced is the massive infrastructure that has been developed behind the iphone to deliver content and manage messaging.
Microsoft on the other hand is concentrating in the auto industry, first step is the parthership with Ford. Same deal, tablet PC built in to cars, content delivery over the web on the road. They do have the infrastructure that is sitting behind live.com and msn.com.
So, if you take the bus you get an iphone, if you drive buy a Ford