The device is pretty much clear in everybodies head. A bigger iPod with a big screen that plays clips. There are non Apple ones on the market, but why does it take Apple so long to come up with one?
One plausible explaination is that they don’t have to. As long their market share remains unchallenged it is better for the bottom line to hold the next Version back. The longer you wait with a high tech device the more time you have to get the system right. Write the proper software for it. And prices are declining on all components. A video player will have allot of hardware in it that is still in the beginning of it’s life cycle. Hightech component prices pretty much follow the same curve: They are very expensive in the beginning of their life cycle and then get much cheaper. The longer Apple waits the more profits will be left for them.