Apples critics have been wrong before, but they’re not wrong this time.

Steve Jobs can’t hope to compete head to head with the biggest in the wireless business – he’s inferred as much in quoting targeted sales figures of 12 million units.

So what will Apple have achieved for itself in getting involved in this market? On the positive end, they may have the opportunity to extend their “iPod halo” into the board room which would be tremendous.

On the negative end of things, Apple may have just provided a host of very competitive electronics manufactures the means to simultaneously dilute Apple’s brand while enhancing their own through competition.

I’m puzzled by Apple’s choice of venue for competition here. Apple clearly has the basis for a video iPod, but they have chosen to hold off delivering it to avoid drawing attention away form the iPhone. Apple has crippled the growth of its most explosive product line to serve some purpose that’s not entirely clear. I think the purpose of the iPhone is unclear because it’s not a terribly compelling product and that’s a huge problem for Apple.

Anybody care to disagree?