We're unfunky and obsolete, (and out of time) and out of timeeee....
This is one many owe me a drink for.
When the iPod launched in 2000, I wrote that the biggest competitor to this was the Sony Walkman. In a classic Japanese manner, they looked at the iPod with no public comment and massive internal concern. When the iPhone launched, again same behavior just to keep their product momentum going.
While you can critique it, Sony dropping the Palm OS and doing their own device was the biggest strategic mistake they made in thirty years. If anything, Sony should have bought Palm over five years ago and then they would have a chance to make it against Apple.
Instead, they are still have their "not invented here mindset" of product design and rotate in designers that never have a chance to live or evolve with a product.