Apple and it's display partner were the first to invent a multitouch method that was suitable for production on scale not even fathomable before ...
It wasn't that multi-touch sensors weren't available, it was more that most manufacturers were geared up to make much larger screens.
Synaptics, who makes the touchpads in darned near every laptop... including Apple's... almost certainly could have produced such smaller sensors on the scale necessary.
In 2006, they were showing off one of the hottest concept phones, the Onyx, with their demo UI that included neat features like dragging one person's picture on top of another to set up a conference call, or dragging a GPS flag onto a contact in order to send them a map.
Their multi-point capacitive surface was sensitive enough to detect fingertips or finger edges, and discern a cheek from a finger. You could even kiss the phone and it could send the lip image it sensed:

It had a borderless screen surface on top of an aluminum back. One blogger described the whole device as "sexy":

The August 2006 Onyx prototype was just one reason why everyone was expecting all-touch phones to take off. Even MacRumors suggested that it might be the tech used in the rumored touch based iPod and iPhone that many were expecting back then.
Last edited: