[akikuchi]

I guess I have two points:

1. Your observations about Atari and Newton highlight one of the problems with your initial argument- it's not generally a safe bet to assume an early category-creating product will continue to innovate and develop to stay at the front of the pack.

2. Whether RIM creates a broadly superior product is beside the point. A new market has opened up, and they expect it should be profitable if they can capture just a small share of that market.

Apple has shown a commitment to develop their successful product lines; but as the size of the market grows there will be plenty of room for profitable competitors even if Apple is wildly successful.

[mixmax]

Excellent points - this is why I love HN, it's a great place to have an intelligent discussion.