Originally, we werent exactly sure how to market the Touch. Was it an iPhone without the phone? Was it a pocket computer? What happened was, what customers told us was, they started to see it as a game machine, he said. We started to market it that way, and it just took off. And now what we really see is its the lowest-cost way to the App Store, and thats the big draw. So what we were focused on is just reducing the price to $199. We dont need to add new stuff. We need to get the price down where everyone can afford it.
In the same interview he also explained that the iPod nano cannot take pictures due to the larger sensor required for uses in still photography.
Jobs also discussed the future of e-book readers and said, Im sure there will always be dedicated devices, and they may have a few advantages in doing just one thing, But I think the general-purpose devices will win the day. Because I think people just probably arent willing to pay for a dedicated device. He pointed out that Amazon does not disclose their sales figures for the Kindle. Usually, if they sell a lot of something, you want to tell everybody.
In regards to the future (ie Tablet?) Jobs said, There are some things that Im focusing a lot of attention on right nowto polish... No, I dont think were going to miss a beat. We have some really good stuff coming up.