It was great how Steve fully acknowledged the problem with tablets, "So all of us use laptops and smartphones... the question has arisen; is there room for something in the middle. We've wondered for years as well -- in order to create that category, they have to be far better at doing some key tasks... better than the laptop, better than the smartphone."<p>Then he proceeded to introduce a device that underperforms vs either smartphones or laptops in almost every way.