The way the industry once operated, "Each handset company would come up with its latest iterations and maybe have the hottest device of the season or not," says Ms. Huberty, the Morgan Stanley analyst. "Enter apps into the equation, and that changes. It goes from being a product cycle game to a platform game." "People will look back on the iPhone as a turning point in the industry," says Craig Moffett, a telecom analyst with Sanford C. Bernstein. "The iPhone will be remembered as the first true handheld computer.