Replying to my own post I know :) Remember Apple are attacking this market in multiple directions: The have the ipod touch, iphone and ipad. Most applications

Replying to my own post I know :) Remember Apple are attacking this market in multiple directions: The have the ipod touch, iphone and ipad. Most applications written for them run across all devices. They are using a cunning take on cross-product economies of scale to further distance themselves from the competition due to lower costs and market saturation (ipod touch now outselling iphone for example). An ipX in every pocket? That's the dream. Taking this into account we now have an 88% market share. So apple have larger economies of scale which can drive profit high while keeping prices low.