What would make sense, either this year or next year, would be to split Botha the iPhone and iPod touch lines into pro and consumer lines. The two most common complaints against them are that they are too expensive or that they lack too many features. One line simply cannot address Both those complaints at once. Splitting the lineup would not split the dev platform, it would just enable them to widen there market.

Um, since I’m neither Canadian nor a cigarette smoker, just about what dimensions are you talking about here?

Plus one other observation that was hinted at above. Microsoft & Co. tend to create overly complicated solutions without any clear message or addressable market. For example, after tablets didn’t do too well, the tablet concept was designed into twisting laptops. This created added complication and additional expense. The extra cost makes these laptops more expensive than other laptop options, thereby limiting any potential market adoption.

On the other hand creating a device that is simpler than a laptop, with fewer parts, would net a less costly device that would be able to create market for which laptops are too expensive and too bulky.

The MacBook Air has shown us where the priorities are in mobile computing. This new laptop that was widely trash-talked by supposed tech experts/ pseudo-journalists, with questionable allegiances and conflicts. Knowing that these technology writers didn’t know a good idea from their elbow; I stated all along that the MacBook Air was going to be the smashing success that it is today. The MacBook Air gives us a big screen, light weight, thin profile, longer battery life, with decent processing power. It isn’t the fastest laptop, nor does it have all the bells and whistles of slots and ports that bigger, uglier and heavier laptops have. The MB Air just gives us what most people need on the go, in a laptop form factor that is convenient to take along.

There is an addressable market of many people who don’t even need a full laptop. For now, they can make do with an iPhone. I don’t think that the iPhone and iPod Touch will be the only option for sub-laptop portable computing from Apple.

By taking out the keyboard, the hinge, half the case, what remains is the flexibility 1) to be able to put in a better screen (touch) even if a bit smaller, which would also give us even better portability, 2) to be able to offer the device at much less reduced price point, 3) to be able to maintain profitability at a much lower price point.

The new device would be in essence a larger form factor of an iPhone, or more precisely, a larger iPod Touch, with a smattering of technologies borrowed from the MacBook Air. Although, I’m unsure how far the iPod nomenclature can be stretched. At some point, it becomes clear that Apple has established a portable computing platform that overtakes the prominence of the iPod, and that cannibalizes the the iPod business (at least the upper-end anyway). The only dedicated music players will be at the lower price points. Music will be but one of many many functions that will be available on Apple’s simple but elegant portable computing hardware.

The iPhone just whetted people’s appetite. We haven’t seen the half of it yet. Soon we’ll see iPhone 2.0. The iPod Touch gives us just a shadow of what’s to come.

There is room at the bottom end of the MacBook line — both size-wise and price-wise — that Apple can exploit profitably. With an appropriately sized and priced device, they can open new markets with a profitable device that will help to cement Apple’s position at the forefront of mobile computing.

To the future and beyond.

That’s exactly what I have in mind. Although I’m not quite so sure that there is a product that is ready for market, or at least that the cost is not yet quite right. I don’t expect Apple to release a product before the iPhone gets much wider adoption rates, which will ramp up significantly with the multiple geographic launches that have been announced for launch soon.

Apple will explore any size or form factor that they believe may have commercial success. I wouldn’t expect any form factor that would vary much from the current iPhone or iPod Touch for a while; certainly not before MacWorld 2009 or WWDC 2009.

Dan is right when he says that Apple first has to solidly establish the iPhone and same form factor touch iPod, before branching and expanding the mobile computing line. There will be a merging of the MacBook line at the bottom end size-wise with the upper end of the iphone size-wise and the technologies Apple develops will be used across their product lines as appropriate.

I’m not advocating any one form factor over any other, as some here who are all lathered up over a tablet or some other product that Apple must make because they want one. I’m just saying that there is an addressable market for devices larger than iPhone that can better handle functions that otherwise could only be done with a laptop.

The iPhone is already cannibalizing many on-the-go functions that previously could only be done with larger laptops. I see no reason why a slightly larger device of a size yet to be determined that is smaller and cheaper than laptops would not further open up the portable computing market.

The smaller size would make portability easier; and Apple is exploring the edge of portability in computing. Plus a lower cost device would make it easier for Apple to propose district-wide or school-wide “one child one device” solutions that would incorporate all or most of the textbooks in a digital form, plus would provide each student with their own device for creating their writing assignments and multi-media presentations, doing math problems, reading their texts and other books assigned for learning, plus for doing research in district library depositories and on the world-wide web.

A lower cost device would also be more appropriate as a portable entertainment and gaming device, more so than at the macBook price points.

Plus, there are quite a wide potential market for personal information technology device, that will get larger over time. Some of this market will be handled by the iPhone and iPod touch at the smaller end.

The only point where I disagree with Dan is that I believe that this in between market — bigger than a phone but smaller than a laptop — will be quite large and is an addressable market for Apple. Dan has tended to discount the possibility of any market apart from the doctor and UPS guy. I feel that this view is too narrow; Apple has the technology and vision to create quite a few solutions in this middle space that would create a market that would be anything but niche.

Dan is a smart guy. His analysis is spot on. Apple would not enter any market unless they believed that they could sell a lot of devices and make a tidy profit making and distributing such devices. I see a developing market here; Daniel doesn’t yet, but he will come around; before or after Apple ships a product.

The product need not be called a tablet. I’m not constrained by the current concept of what is a tablet; nor should anyone expect Apple to feel constrained in visioning any product. In fact, I would expect that Apple device would be called anything but a tablet since that concept has not done too well commercially apart from modified laptops.

I see a device that is much less complicated, and therefore less costly than a laptop that Apple could use to address markets that are currently not being served. Apple would take the touch interface technology and software keyboard from the iPhone, plus the software and entertainment distribution systems created for the iPhone and iPod platform; and add the mobile computing technologies from the MacBook lines to create a device that is smaller and cheaper than any current MacBook line device to create solutions for markets that are not currently being served by either the iPhone or any of the MacBooks.

Don’t put limits on Apple creativity; they certainly don’t. I don’t expect the touch technology to be cheap enough for such a device for a while. It may be at least a year or two for the cost numbers to work. But the cost will come down. When it does, Apple will release a product that will have encounter a successful market update. Many happy customers will thank Apple for thinking outside of the box to deliver solutions that just work.

Apple won’t sell a tablet. They’ll sell an portable entertainment device. Apple will sell a educational device that will replace laptops and textbooks. Apple will create a device that does portable casual gaming. Apple will create a device that plays movies and TV shows on the go. Apple will create a device for showing off the family photos in a larger but convenient form factor. Apple will create a device that others can develop into solutions for vertical industries that will not only include healthcare and shipping, but any industry where employers expect employees to input or access information, which is increasingly almost everyone. A solution that costs less than a PC will be widely adopted; many jobs will not need a full-fledged computer or laptop. Apple will create such a solution.

I can’t wait to see Apple’s answer to this problem.

http://www.macrumors.com/2008/05/14/intel-confirms-atom-based-larger-iphone-mini-tablet/