I don't think Apple will let this segment pass it by. There were mp3 players before the iPod, and smartphones before the iPhone, and they managed to introduce

I don't think Apple will let this segment pass it by. There were mp3 players before the iPod, and smartphones before the iPhone, and they managed to introduce a new spin on an existing idea and make it sexier and more expensive. That's what Apple does best. I wouldn't be surprised if apple releases something in the near future that is part iPhone, part netbook, part Kindle, part tablet PC, and all Apple. I'm picturing a 7-9" hi-res touchscreen with 3G/4G/WiFi connectivity, a true Mac OS (that still runs iPhone apps), built-in webcam/digital camera, GPS, the works. And because it's Apple, expect to pay a premium for it.