Steve Jobs - 7-inch Tablets are "too big to be a phone, and too small to compete with the iPad"
Apple is shipping 4.1 Million iPads every quarter, and there’s no sign of slowing down. Steve Jobs is obviously very happy about the success of the iPad, and he is as “humble” as he can be. The thing is, he isn’t too fond of the competition.
“Given that tablet users will have a smartphone in their pocket, there’s no point in giving up screen size. Seven inch tablets are tweeners — too big to be a phone, and too small to compete with the iPad.” — Steve Jobs, Apples earnings call
He does have a point — competitors are spreading the selection way to thick, and consumers are probably going to decide on a tablet or a smartphone — instead of getting both.
Now remember, Steve Jobs is the one that said nobody would want to watch video on their iPod, and that Multitasking was never going to come to the iPhone — but this claim from the Apple CEO seems to have a fair argument, unlike those other statements.