FTA: <i>Thus, a reasoned analysis is that the iPad is to the iPhone &#38; iPod Touch as the MacBook Air is to the MacBook. In other words, a cool product with a devoted base of happy customers, but in relative terms, a niche product in Apple's arsenal of rainmakers.</i><p>The difference being, of course, that the Air is a high-margin luxury item and was always intended to be so.  Apple never intended to sell them by the millions, and is no doubt happy with the revenue generated.  The iPad is priced just a tiny bit higher than a netbook, and looks to have a rather larger part cost (LED screen, large touch surface instead of a cheap keyboard, scary amounts of flash, custom chipset instead of mass-market Intel stuff).<p>There's no room there for "niche" products.  If that's all they get, the product will be stillborn.