The iPhone was released in 2007. This winter, Microsoft’s response, Windows Phone 7, will be released with no cut and paste, no multitasking and no Flash. Microsoft has a history of stanching the arterial bleeding of its piss-poor consumer electronics with cash from its successful Windows, Office and Server businesses, so releasing a mediocre 1.0 product usually isn’t a problem.
It might be a problem if your 1.0 sucks ass, which if you believe the usually-pro-Microsoft InfoWorld, is exactly what Windows Phone 7 does.
Good thing they got some practice killing products recently. Might come in handy.