[noobaccount]

I worked at Apple. I don’t remember but I’m pretty sure perf just sucked, and I’m guessing there weren’t enough people to deal with it. Like, you are giving way too much credit to strategic thinking. It wasn’t like that. Nobody had a crystal ball.

[mywittyname]

They certainly saw how profitable iTunes was and saw an opportunity to replicate that success with applications. They may not have predicted web browsers becoming as capable as they are, but I suspect that senior management saw a threat of mobile websites as app replacements. Even free apps generate revenue for Apple.

[fomine3]

The first iPhone doesn't have AppStore but has Safari. It seems that they don't expect its advantage initially.