iPhone has a computer in it, but it is not a general purpose computer. Why is this concept so hard to get? There are tons of things that have CPUs and billions of lines of code to run them, but they are not personal computers.
It seems like they're using the iPhone for pretty much all intelligence, which makes sense. Custom embedded systems are non-trivial to design, manufacture, and bootstrap software for (I've been involved in some capacity with several). You'd save significant effort and trivially enable many more features by relying on something as powerful and mature as an iPhone.
iPhones have better hardware/software integration, which is easy for Apple to do because they control everything. They get better performance out of their hardware because of this.
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