They need to release a product that appeals to all. An iPod is fairly competitively priced, Apple's computers aren't really. They need another popular device that isn't an iPod. Lots of iPhones around but the market share isn't that large.
So if they release a tablet computer which is pretty similar (in power and limitations/DRM) to an iPhone and costs £500 they've blown it.
It needs to be a very useful device for about £250 tops.
Edited by deleted (Mon 18-Jan-10 22:59:40)