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I find that Jobs doesn't always mean what we think he means.
1) I still remember the pre-introduction quote on the Segway: "They'll have to reinvent cities for this thing." At the time everyone thought it meant that cities would be reinvented due to the introduction of the Segway. With hindsight, I think it meant that the only way it would be successful was ifyou reinvented the city.
2) No ebook readers. I think this = no dedicated ebook readers. He wants to sell many more devices and is willing to sell a multi-purpose device, but thinks the market for ebooks is too small.
3) No tablets. There are two ways he rejected previous visions of tablets. First, the Newton style: even after the iPad was announced he stated that one of the keys was finding an O/S that didn't depend on handwriting. Second, no windows style: he didn't think the tablet needed or should be a full computer. It's attributes should be different.
4) Regarding screen size, some folks have pointed to the smaller iPhone/Touch screens. The point is that those aren't intended to be tablets, although some of us use them as such.
So, maybe no 7-inch iPad, but how about a 7-inch game board, or a 7-inch media controller for the new AppleTV, that just happens to run the same iOS.
Understand, I'm not saying he is right, just that this is how I believe he interprets these things.
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