Or that if they wanted to make inroads in the market, they were going to have to make the first one as a loss leader to make inroads on the market.

And if anyone is going to make inroads against the iPad, that's likely what they will have to do. Nobody is going to get the economy of scale that the iPad does with their first product, and nobody is going to have superior features at a similar price point, so the only way to make inroads is going to be the loss leader and making money off of a similar app store. (the playstation model)