Build a small case for the iPhone that includes a keyboard, and turns the device into a netbook. Something that doesn’t rely on a chintzy on-screen keyboard.
You’re Apple. You can make it out of burnished aluminum, put the logo on it, and make it the most stylish looking clamshell ever.
You can even make it a proprietary version of Bluetooth to lock out competitors, because you’re Apple.
Mount the iPhone (or iPod Touch) into the nestled little case, and let it sit flush and snug in landscape mode. Heck, power the thing off a small rechargable battery and run a couple of external speakers on it.
Put a little chip in the thing, which allows for actual Cut and Paste!
Charge $229 for it. Unless they want black, then charge $259.
Because you’re Apple.
