If you want to learn how to disrupt existing industries and build billion dollar companies from nothing, there are few better examples.
This sounds exactly like Flip (RIP). What do you think the difference was? The GoPro anti-shake technology & the ability to attach to helmets?
I think Flip was unlucky in that their releases coincided with the rise of smartphones, which took their lunch. When one device just takes video and costs around as much as an subsidized smartphone, there isn't any question which one I'm going to pick.
GoPro, though, wasn't hurt by the rise of smartphones. Surfers won't use smartphones for footage; they'll use the GoPro, since it's waterproof, has anti-shake, and other inportant features, targeted specifically at surfers.
Perhaps the moral is: when the rest of your industry is declining, focus on a niche, and execute well.
The flip probably could have found a new niche but cisco wasn't interested and basically let them be consumed by the advancement of technology.