Great article by Steven Sinofsky, talking about the rise and fall of the Blackberry:
The point is really the breadth of changes the iPhone introduced to the Blackberry offering and roadmap. Some of these are assumptions about the technology, some about the business model, some about the ecosystem, some about physics even!
Imagine you’ve just changed the world and everything you did to change the world–your entire world view–has been changed by a new product. Now imagine that the new product is not universally applauded and many folks not only say your product is better and more useful, but that the new product is simply inferior.
Put yourself in those shoes…
This is especially interesting coming from one of the guys who were in charge of building an answer to Apple's new offering at Microsoft. I'd love to see the same article, but with inside info about what took place in the minds of Redmonders when the iPhone came around.