Your best customers provide all the wrong information when the market is being disrupted. Ignoring them is impossible while complying is a strategic mistake.
Theirs was “the Mac in a phone” idea. The reason it worked was that it was not a phone. The reason it worked is because it was the hardest disruption to spot: … it was a computing product and not a telecommunications product.
This is the subject of a much larger discussion, but I believe that the 64-bit 5S is the next stage in Apple’s progression as a mobile computing company, not a mobile phone company.