Funny thing is Apple will probably release a 7 inch tablet. Then Steve will have some magical things to say about how 7 inches is great.

Capt'n Corrupt I take what you are saying about the tab being competitively priced with smart phones. However, I think smart phones are much more necessary. If you have a tablet you still need a phone. If you have a smart phone then you don't really need a tablet though it would be nice to have one. For that reason I would expect tablets to be cheaper than smartphones.

However, the main issue is that it is priced the same as what is going to be the most popular tablet for sure and which is bigger. It puts Samsung in a boat if they decide to release a 10 inch tablet. Will they really sell it at the same price as the 7 inch Tab? The options are:

(a) their 10 inch tablet will be more expensive than ipad (which is crazy);
(b) they would have to drop the price of the 7 inch and sell the 10 inch at the current price of the 7 inch;
(c) they price both the 7 inch and 10 inch the same.

(b) seems most likely. (a) and (b) both prove that the size of the internet tablet should affect the price which I certainly think should be the case. (c) proves otherwise but I find (c) to be most unlikely ( and (a) would be suicidal).