And further, buying your kid an iPod Touch at the time served the same purpose (for Apple) as buying your kid an iPad today. It gets them into Apple's products

And further, buying your kid an iPod Touch at the time served the same purpose (for Apple) as buying your kid an iPad today. It gets them into Apple's products space, develops brand affinity and trust, and gets them familiar with iOS so that they are more likely to buy an iPhone. It would be surprising if we had stats on iPad versus non-iPad kids and what percentage of them ended up being iPhone users, and those stats didn't show a strong correlation.