Bollocks, Sony Ericsson was innovating, and I still feel that the M600i that I owned was one of the most innovative phones ive ever used. Still to this day no phone comes close in keyboard ability (seriously, go google the M600 or P1i), and UIQ3 was this wicked blend of smartphone power with a dumbphone-esque interface: something the iPhone did but improved on massively.
I use Apple everything. I love Apple products. But to say there wasn't any innovation happening before it in the phone sector misses some really cool things.
PS. I would pay all the money in the world for an updated P1i, same qwerty rocker keyboard, capacitive 3" touchscreen @ 720p running Android. One can dream, right?