How Apple Outsmarts Its Competitors | Tim Bajarin | PCMag.com: During that meeting, they made a comment that I believe is really the heart of Apple's secret sauce and the cornerstone of how it continues to outsmart its competitors. They laid the iPhone on the table, with it turned off, and asked me what I saw. I told them I saw a 3.5 inch blank screen. They said that from Apples point of view, the "magic" of the iPhone is strictly in the software. And, they de-emphasized the hardware.