The problem is a standard phone here in Japan has quite a few features that are years ahead of the iPhone (save for its interface) - we can pay for the train, the bus, or the shopping using our phone as a touchless cash card, we can watch HD quality TV for free by picking up over the air broadcasts even while moving in a high speed train, GPS, fingerprint/face recognition, 2 cameras one of which is > 2 MP and the other one used for videophone calls (you can check out DoCoMo's website if it sounds too good to be true). iPhone will sell only as a fad and it will fade away.