"That said, we do look at the space and

are interested to see how customers respond to it

People that want a small computer (so to speak)

that does browsing and e-mail might want to buy

an iPod touch or an iPhone."

Now consider this:

According to him, iPod touch is a runaway hit,

clearly being driven by the App Store.

Conclusion:

The iPod touch gives a hint of Apple strategy for mobile devices.

A larger iPod touch is a no brainer, a guaranteed hit.

It does not take Albert Einstein to figure this one out.

Call it iTablet, Mac touch or else, it's their answer to the netbook.

It might not fit to your pocket, but most people carry bags, purses, etc. anyway.

And on the other hand, its larger screen will make it more attractive and productive to many.

Enough with this meme. Apple sold 2.22 million Macintosh computers during the quarter, representing a three percent unit decline from the year-ago quarter.

http://www.apple.com/pr/library/2009/04/22results.html

The worldwide PC market contracted by 7.1% in the first quarter of 2009 according to IDC. It contracted by 3.1% in the US.

http://www.idc.com/getdoc.jsp?containerId=prUS21797609

The worldwide PC market contracted by 6.5% in the first quarter of 2009 according to Gartner. It contracted by 0.3% in the US.

http://www.gartner.com/it/page.jsp?id=939015

On a worldwide basis, the Mac growth (3% decline) is ahead of the market (6.5% to 7.1% decline depending on who you ask). Thus, Apple is gaining share despite the slight decline in shipments. In the U.S. the Mac growth is also negative, Apple's share is down by 0.1% according to Gartner but it's up by 0.2% according to IDC. In all, Apple's market share is not slipping.