Netbooks make up less than 10% of the notebook market, or at least they did as of the end of 2009. e-book readers, by way of comparison, are estimated at a $1.2 billion market, as opposed to the $109 billion portable computer market.
I'm not going to look for the smartphone numbers 'cause I'm getting statistical fatigue.
Anyway, if Apple provides an e-book reader/netbook/phone replacement all-in-one device, and does its usual job of exposing the 10% of functionality most users need in a slick interface, well ... it sounds rather more like your formulation of "creating a new market" than "the market already exists via netbooks and laptops," as you put it.
I know full well that Apple makes flops. Seen 'em, touched 'em, steered friends and relatives away from 'em, repaired a few in my time. But this does not fit into the classic mold of the Apple iFailure.
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