Guy Kawasaki in today’s New York Times:

“The first five million will be sold in a heartbeat. But let’s see: you can’t make a phone call with it, you can’t take a picture with it, and you have to buy content that before now you were not willing to pay for. That seems tough to me.”

In the same piece, the writers said this:

Many consumers do not understand the device’s purpose, who would want to pay $500 or more for it and why anyone would need another gadget on top of a computer and smartphone. After all, phones are performing an ever-expanding range of functions, as Apple points out in its many iPhone commercials.

Apple didn’t have these challenges with the iPhone. The value was immediate and clear. It never faced the “I don’t need another gadget” obstacle, because it was clear that the iPhone would replace your current phone.

The iPad doesn’t replace anything.