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Five years does sound extreme but we're not just talking phones. With as much money as Jobs had at hand to throw around it would not be too surprising if they have a development lab with several years worth of new product ideas (TV's, watches, or whatever).
I still remember when Apple moved into phones. I laughed at them along with almost everyone else. Microsoft lost their shirt trying to crack that nut earlier. I bought an early Windows CE phone and taking it back the same day because it was so awful. Apple sure had the last laugh over Microsoft in that market. MS has a much improved phone OS today but it still struggles for market share.
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