Another possible recipe for a startup (not saying this would be easy) is to find an important way that Apple is handicapping their devices and overcome it on Apple's own platform in a way that Apple will allow. If you can do that, users will love it and buy your product.
>If you can do that, users will love it and buy your product.
I'm trying now to remember a story relayed here about a company who developed a product that bested Apple, Apple considered buying them/it but the negotiator dropped the ball or something and then Apple wiped them out by besting them.
Anyway, if you beat Apple then they'll either lock you out (why handicap it if they'd let you carry on) or integrate your idea working around your IP. You're going to need lots of IP/anti-monopoly lawyers. You might get bought out too, especially if it's cheaper than there end of the court cases ... I guess what I'm saying is that building hardware on top of Apple's platform seems it would always be limited in some way.
You could be referring to the story about how Panic's Audion nearly became the basis of iTunes, rather than Soundjam which they bought instead, though it is quite an old story.
"Hi Steve, it's Cabel, from Panic."
"Oh, hey Cabel! Nice to meet you. So tell me, what'd you think of iTunes?"
"Well, I think it looks great! You guys have done a great job with it. But, you know, I still feel we'll do all-right with Audion."
"Oh, really? That's interesting, because honestly? I don't think you guys have a chance."
Or overcome that limitation on a different platform? (Android, WinPhone 7, etc)? After all, I think a lot of the early interest in Android came from overcoming the limitations of carrier exclusivity (in the US at least) and form factor limitations (options for hardware keyboards, replaceable batteries, larger screens, etc).
