I'd never thought about this before, but this New Yorker article makes it real clear that the iPad, which Steve Jobs described as "far better," is yet another iteration in Apple's approach to marketing: build in and they will pay. This contrasts, the article says, to companies like Flip that offer products that are low priced and good enough. And the article says, that both of these approaches ignore the amorphous middle of the market — and that companies that are going for these high-end and low-end segments are capturing and increasing share of the market overall. The iPhone, the article says, makes almost as much money as all Nokia's phones combined. By the way, the article is by James Surowiecki, who wrote the wonderful book The Wisdom of Crowds.