When Mossberg in 2003 asked Jobs whether he
planned to put video in an iPod, the CEO said
he was turned off by the idea.
“I’m not convinced people want to watch movies
on a tiny little screen,” Jobs said. “To
paraphrase Bill Clinton, ‘It’s the music,
stupid, it’s the music!’ Music’s been around
for a long time, will continue to be, it’s huge.”
"I'm not convinced people want to watch movies on a TINY SCREEN"
Later they created a device with a much bigger screen(at least six times bigger) and called it IPOD, but it had not a tiny screen.
The same could be said about small computers. When I got my first laptop I considered at least 17'' necessary, which was very bulky, I told everybody that.
Then I got lots of complaints from people when I got a 13'' macbook air:"You said you will never use anything smaller than 17 inches".
But I didn't say that. I said that given the resolution they had at the time, I needed 17 inches, but obviously I wanted the same screen in a smaller size at a reasonable price.
The 13 inches macbook has more pixels on it than my old laptop.
You should read the entire article. Steve said a lot of stuff that he later (not so much recanted as entirely) ignored.
http://www.wired.com/2010/02/steve-jobs/