The Mini-Computer Wars

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Adding to the design drama is the possibility that Apple may jump in, which could both legitimize the category and add a killer competitor. Now that CEO Steve Jobs has modified the Mac operating system for the iPhone, he could use that slimmed-down version for other mobile devices. Apple could employ flash memory instead of a standard hard disc, extending a mini Mac's battery life and allowing it to start up quickly, like a phone. A Jobs subnotebook would likely be bigger than FlipStart's but smaller than a laptop. Apple would have a distinct software advantage, given its focus on nongeeks.

Allen's not worried. Although the device he's launching is larger than the one he once envisioned, Allen says it packs everything business travelers want in a portable package. "I've always been captivated with problems that really need solving--what should exist and how we could create a solution." His solution works, but the real question is whether there was a problem to solve in the first place.