Apple and NetBooks

It's a shame that Apple does not produce NetBooks. But thankfully, there are a few interesting offers out there, even if Microsoft seems to have squashed some of the initial Linux variety. Today's conference call on Apple's Q408 finances shed some light on what might happen if Apple were to ever produce a NetBook:
Steve says that the iPhone could be considered an entrant into the netbook market, since it can browse the web (uh, sure), but that Apple's looking at the "nascent" netbook market and it's "got some interesting ideas there if it does evolve." [Engadget]
Thus: Apple won't shrink their Notebooks, but instead grow their iPhones (confirming a hunch of my Brother's). Throw in a folding keyboard and you do have an interesting mobile solution.