And corresponding high prices. I don't see Apple being able to challenge Acer/Asus in the full featured netbooks with 1 Gig RAM, 160 Gig HD, webcam, great keyboard, XP and MS Office trial version all for just $300.
They don't have to get to $300.
A netbook that sells for $600-700, about 4x the size of an iPhone and running OS X will produce more profits than all the $300 netbooks in the world. Once you have tried anything Mac, going back to Windows is just plain painful.
Back in the days when I worked, we had to use Windows. The problem is not the speed of the machine, back in those days Windows was faster. The problem is that the slow link in any personal computer is the man-machine interface.
On average, doing anything on Windows required more mouse clicks, and more keyboard inputs. I think something like 1.5 times as many mouse clicks, maybe twice as many, and a lot more keyboard inputs.
I will never forget running into Windows programs that made me input my password twice. They thought they were giving extra security, I though they were giving me a typing test, with double the opportunity to get it wrong.