Don't confuse the lack of modern mobile apps with any mobile apps. There was a thriving ecosystem around mobile apps at the time. Not only Windows Mobile and Blackberry but Symbian too, which I believe was the largest, and Treo.
There were many companies living on this stuff. Mobile data was still very expensive, which didn't change for a few more years, and touchscreens were small and crappy. So the market was mostly business logic and CRM apps because they were the ones that could afford it.
That changed when mobile data and big screens became cheap enough for consumers, but I think Apple was as confused about that as everyone else given the state of early iPhones.
There were many companies living on this stuff. Mobile data was still very expensive, which didn't change for a few more years, and touchscreens were small and crappy. So the market was mostly business logic and CRM apps because they were the ones that could afford it.
That changed when mobile data and big screens became cheap enough for consumers, but I think Apple was as confused about that as everyone else given the state of early iPhones.