Nearly all the upcoming tablets from outfits like Cisco (CSCO - Get Report), RIM and Samsung are 7-inch touchscreen devices. It is a size that Jobs says is too small for adequate tablet use. This crucial point comes from the developer of incredibly popular small-screen devices like the 3.5-inch iPhone and iPod touch.
Apple currently owns the tablet market with its 9.5-inch iPad that sells for between $500 and $800. The onslaught of smaller rival tablets will likely bring much lower prices and, of course, fragmentation.
Apple shares were down 2% to $311.64 in late-morning trading Tuesday as investors were banking some of their recent gains and buyers were shopping for lower entry points.
--Written by Scott Moritz in New York.
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