Not everyone needs a phone to be a video player, or a camera, or a photo viewer, or a game console, or even a word processor or notepad. Some people just want a phone to be a phone... as in, a communication device. Or at least, primarily a communication device.

The problem with the modern concept of the "smartphone" is that it tries to be all things to all people. But fails to do any of them really well. Jack of all trades, master of none.