WESTCHESTER COUNTY, N.Y. (TheStreet) -- Let's talk iPhone coverage. The media hates Apple's ( AAPL) new iPhone. Cosmetically and in terms of new-fangled features, they say, it's not up to snuff. They gave Apple the cold coverage shoulder.For the sake of argument, let's play along. Most fail to mention why disappointment at this point in the Smartphone game is of added importance. There is a particular dynamic at play that was absent when, say, the iPhone 3GS came out and the media fretted that it made no "grand leap," as CNET put it at the time. That was two years ago, a lifetime in Smartphone time. Breakout makes the point most others curiously skip on the iPhone4S: absent considerable innovation, Apple leaves an opening for the competition that has been amassing by the day, including Google's ( GOOG) Android. The perception that Apple is always setting the standard gives it a natural leg up, even in a field now rife with competitors. But when you are no longer seen as the grand-innovator-in-residence, you lose that edge--an edge way more important to maintain now than in 2009. Another important point most of the media skipped is cost to Apple. This is typical. The media often focuses on the surface, whether it's revenues or flashy features. But especially in light of Amazon's ( AMZN) introduction of the Fire, which it seems they are selling at a loss (under the we'll-lose-money-but-make-it-up-on-volume school of silly business thought) the profit margin of a signature product is an essential factor. The Wall Street Journal--and few, if any, others--gets at that issue front and center with an article titled: "Healthy Profit Seen on Latest iPhone." The Journal compares Apple's consistent cost basis on the iPhone4S and flush profit to Amazon's loss. An important point, and one lost in the focus on the new iPhone's features.