"Apple have taken the plunge and released a concept, Nokia and others should grab their scrotums tight and bring their own futuristic ideas to physical fruition."
I suppose part of the problem is that Nokia and other phone makers have all kinds of phones at all kinds of price levels to deal with, but Apple is (for the moment) just doing one luxury model in one country on one network with one kind of phone standard. The tricky bit is when you have to keep all the different plates spinning for an extended period of time: networks, international issues, phone standards, wireless standards, local tastes, specialised models, cheap models, mid-range models etc.
It's interesting that Apple has never had that large a range of products, they've only released two or three iPods a year and a similar number of Macintoshes. Is that approach workable in the phone world where manufacturers currently bring out 10 to 40 new models each every year?
If Apple does expand its range of phones to match the range offered by rivals, these kinds of prestige projects may suffer as the company will have to spread its attention far more thinly. They'll also have to worry about more than one network in each country, and more than one phone standard in each country (the iPhone doesn't support 3G, yet 3G is an important feature in European luxury phones). And they can probably forget about ever selling the iPhone in Japan, unless they agree to brand it under a phone network's name and model number rather than their own.
Alternatively, Apple could remain a luxury phone maker in which case they'll steal customers from the existing companies but won't be directly comparable rivals. The iPhone might just be an attempt to keep the iPod alive in the face of increasingly sophisticated music phones that can download music directly from the internet, rather than an attempt to take over the entire phone world.
Most people aren't technology enthusiasts and most will not buy $500 phones with touchscreens when all they want to do is make calls, so the real question is what happens in the future. Will Apple stay at the top end, or will we see mid-range and low-end iPhone equivalents of Nanos and Minis?
I have a feeling that Jobs wants to keep the Apple brand name special, and won't get involved in the bread-and-butter business of making phones that do little more than calls, and we won't see more than two or three iPhone models a year.