Apple would crash and burn if they went into the handheld market.
First, they would need an in-house game development studio, which they don't have.
Second, they would need to recruit third parties, which they couldn't (see: Microsoft with the Xbox).
Third, they'd need to price it competitively, something which Apple seems to be incapable of doing for anything other than their computer hardware.
Fourth, despite all that, it would need to sell to some group other than a couple million hardcore Apple fanboys.
"'Casual games' are something the 'Game Industry' invented to explain away the Wii success instead of actually listening or looking at what Nintendo did. There is no 'casual strategy' from Nintendo. 'Accessible strategy', yes, but ‘casual gamers’ is just the 'Game Industry''s polite way of saying what they feel: 'retarded gamers'."
-Sean Malstrom
