Exactly. In 2006, no one expected Apple to be in the business of making phones. And they never really wanted you to think of the iPhone as just a phone. It was more like an iPod that could make phonecalls and other magical things. They wanted to define a new product category, and they did. This isn't a watch, it's a way to see your iPhone all the time without pulling it out of your pocket; it's seeing all your notifications and looking good (as opposed to looking ridiculous like Google Glass).
> In 2006, no one expected Apple to be in the business of making phones.
My recollection of history is a bit different. What I remember is that people were practically begging Apple to build a phone. You might say there was a half-hearted attempt with the ROKR, in partnership with Motorola, but it didn't really address what people were seeking. The calls for a phone done the "Apple way" continued. Now, I do believe Apple ended up greatly exceeding the expectations of the customers with the iPhone and, as you suggest, perhaps even created a new market segment because of that, but was hardly a surprise to see them announce something phone-like.
hindsight is 20-20. Apple was oft quoted as saying they wouldn't do it. The ROKR was a disaster but perhaps made them realize they had to do it themselves.
