There is no competition, no other device can compete with what Apple has brought us. There is absolutely no handheld device in the world that can compete with the iPhone. The ipod touch stands closely behind. I bought my ipod touch 2G a month after it came out. I thought the appstore was AMAZING, it was/is nothing no other device had/has. I was downloading free apps and 99 cent apps like no tomorow. I just tethered jailbroke it last week. The potential of customization, emulators, and third party applications just enriched the experience tenfold. I used to have second rate web-flash like games on my ipod that i downloaded for free from the appstore. It led me to by quality games such as monopoly, scrabble, etc. I now have almost every game you need in every bored occassion. I can instant message with beejive, now hotmail using Mail, and not to mention the old fashion- surf the web. On top of all this, I have books, comics, manga, GBA/NES roms, offline maps. I can have every goddamn thing I want or need. It's so ridiculous that I'm literally speechless. And this is just coming from an ipod touch user, I mean, seriously, If i had an iphone it would increase my experience with this products even further. How might you ask? Well for one thing, I won't need to carry 2 devices (phone and ipod). The iphone has voice input: for voice recording, voice clips on BeeJive, ocarina, etc. It also has a camera, quick pic sending on Beejive; A CAMERA. How else? TEXT messaging, GPS, more access to contacts (phone numbers "(that you can actually make a call to) along with emails and other information. And last but not least, my favorite: BLUETOOTH. Wireless earphones ftw. Wireless connection. Now add an adhoc network to connect with other ipod/iphone users to transfer files, and this would be perfect. I honestly think the max potential has been achieved.