We are just providing this for your consideration. We largely think Apple will move in the ARM direction for their ultra small portable devices this year. These images are from a company who are using similar hardware and are able to charge $299 for this device. Obviously this is a little boxy for Apple's taste but the internals would be comparable. Specs and more picts below:
Also, notice in the video they talk about the iPhone and how this device "will play iPhone games".