Sure, but again… it’s like 10x the price of a competing piece of equipment which is still regarded as pretty niche. In the case of an iPhone, 2x the price for 1000x the functionality was a clear “buy”. There’s a reason that among basically everyone I know (mid class millenials) scoffs at watches and iPads but is a complete iPhone addict - the value proposition is just that good. For all the talk of these ancillary/luxury devices, the fact remains that the iPhone (or Android knockoffs) is still the absolute Crown Jewel of tech that cuts across demographics in a way that their other products do not.
And to be honest, a handheld magic cube that fits in your pocket and can display anything and be interacted in any way really is as magical as it sounds. Plus it is a quite good camera as well.
I really think that smartphone design is close to the optimal sci-fi tech for humans, exactly due to it being handheld. We rely on vision and touch the most and I think it combines those well. I am almost sure that VR would even in theory get as popular as smartphones, all else being equal.