@vesuvius: It's worth reading the whole Q and A to get a bit of context:
Q: Can you talk about how you think about the markets for tablets and PC devices going forward? You've been fairly clear about saying that tablets will eclipse PC's in volume at some point, and they are somewhat discrete markets. There seems to be a lot of work on PC platforms to combine PC and tablet experiences going forward. Can you comment on why you don't believe the MacBook Air and tablet markets won't converge? Isn't it realistic to believe that we'll have a device under 2 lbs that will be a notebook and a tablet? Can you comment on why you don't think that product will come?
A: Anything can be forced to converge. The products are about tradeoffs. You begin to make tradeoffs to the point where what you have left at the end of the day doesn't please anyone. You can converge a toaster and a refrigerator but those won't be pleasing to the user. Our view is that the tablet market is huge and we've said that since day one. We didn't wait until we had results. We were using them here and it was clear to us that there was so much you could do and the reasons people used them would be so broad, the iPad is so useful in consumer, and enterprise and education -- the applications are so easy to make very meaningful for someone and there is such an abundance of those, as the ecosystem gets better and better -- we'll continue to double down on making great products. The limit here is nowhere in sight. It's been 2 years since we shipped the iPad and we've sold more than 60 million iPads. Took 24 years to sell that many Macs, 5 years to sell that many iPods, 3 years to sell that many iPhones.
Count the number of times that journalists used the phrase 'lower price points'. They seem to think that lowering the price automatically leads to greater profits.
I agree that when you converge two devices designed for different uses then you often end up with the worst of both worlds.
Not sure I'd go as far as to say he was scoffing though. As he said, the 'two device' thing is the Apple view.