Cyber-Duck
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http://www.cyber-duck.co.uk
Award Winning London Digital Agency. Cyber-Duck specialise in Web Production and Technology, Web Consultancy, Branding, Online Marketing and Mobile Technology.
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I don't think it was an "outburst" as much as a just a statement of his opinion, and probably an informed opinion at that. From what I hear, Apple tried the 7" form factor in early prototypes even before the original iPhone debuted.
Knowing the way Apple prototypes and vets new product ideas internally, there is a strong chance that Jobs HAS experience with 7" prototypes and the reason Apple doesn't currently produce a 7" tablet is because he didn't like the experience.
The comment about competing on price may (or may not) have merit. I don't know much about commodity electronics components pricing, but given the incredible success of the iPad so far, I think if a competitor could bring a 10" tablet to market at a better price than the iPad, they would have done it already. Apple has a lot of buying power, and despite their reputation for being expensive, they're able to bring products to market for a price that many companies simply can't.
In general, with Steve Jobs, he's usually telling the truth as he sees it. The term "RDF" didn't come from nowhere, however. He's a natural showman and he presents things in the best light he can, but when you boil it down to the basics, what he says is usually what he actually believes.
