i have an ipod touch, basicly an iphone without the phone. not a v2 3 or 4, but 1
my old computer, win 98, 333mhz p2, 92mb (i believe) of ram, ran better than it. the thing is laggy as hell, even doing the simplest of crap, crap my 98 with its limited power could handle with ease.
now we have phones that put my old computer to shame, yet cant preform as good.
here is an idea. take the pretty out of the phone, no bells and whistles, make it a core phone, with extra features. basicly a smartphone that is a cheap one too. people wont expect to have a great "as good as ipod" phone, but it will be better than a track phone.
or here, a laptop replacement phone / home pc.
make a phone that realy costs 4-500$, charge 800 for it, or 300 under contract.
get a real os made for it, or possibly win7 phone, dont know how good that is.
sell a portable keyboard (real foldable) and a home dock got the tv, and give them a relitivly pc experience.
make people wonder if they should get that net book or net top, if they can get that, and a mobile phone too.