They were both right at the time. It wasn't until a few years later that the iPhone was actually competitive. It was really Android (and apps) that changed mobile. None of the companies with great OS teams (Nokia, Blackberry, Palm, Ericsson etc.) could compete with free. All the companies that are successful today are close to the hardware supply chain.

Android only had that opportunity because Apple changed the basic design of smartphones. Until the iPhone, Android was more like the Blackberry of the time. Of course, it wasn't until a few years later that Android phones were decent as the initial ones had issues.