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Funny he should mention "scaled-up smartphone" when Apple invented the concept with their iPad. The iPad was the first tablet that wasn't a computer, but was and still is running an OS designed for phones, that even needs a computer to set it up and sync with.
I guess Apple is really getting scared. And the latest rumors say that the iPad 2 is not even getting a retina screen upgrade -- in that case they will get swamped by the competition even much earlier than I anticipated. My original guess was that within 2 years the Ipad will only have 20% of the tablet market. With a retina screen at least they would have some real world advantage to compensate for the Apple lock down, hardware deficiencies, and inflated prices to get them through 2011 on top.
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