Obviously the iPhone is much more then just an iPod with a browser, but I personally find the most compelling feature of my iPhone to be the browser.
If Apple puts WiFi and Safari on the iPod and mates it with the same screen and multi-touch as the iPhone has, I think that could seriously undercut iPhone sales prospects. Especially because you know Skype and Vonage will be ported to it (legally or via a hack) and then it becomes a de facto phone when connect to a WiFi network. Use web-based mail clients and such, and what do you need the PDA functions of the iPhone for?
You'd end up with almost identical products in terms of functionality, except one offers cellular connectivity and costs $600 and one doesn't and costs $300. And if the one that doesn't offers orders of magnitude additional storage space because it uses a HDD...
Unless Apple cripples it by only giving the Leopard kernel 512KB of RAM so it can't load any apps other then the base OS and Safari or they make it physically impossible to add a microphone to it...
If Apple puts WiFi and Safari on the iPod and mates it with the same screen and multi-touch as the iPhone has, I think that could seriously undercut iPhone sales prospects. Especially because you know Skype and Vonage will be ported to it (legally or via a hack) and then it becomes a de facto phone when connect to a WiFi network. Use web-based mail clients and such, and what do you need the PDA functions of the iPhone for?
You'd end up with almost identical products in terms of functionality, except one offers cellular connectivity and costs $600 and one doesn't and costs $300. And if the one that doesn't offers orders of magnitude additional storage space because it uses a HDD...
Unless Apple cripples it by only giving the Leopard kernel 512KB of RAM so it can't load any apps other then the base OS and Safari or they make it physically impossible to add a microphone to it...