"Failed" is probably a strong word. Seems like it didn't meet Wall Street's expectations, but to say the product failed seems overblown.

As a person who loves Apple products, I'm waiting for the 2nd generation, mostly because I think that's where Apple really tends to shine. The first gen is solid but obviously first-generation; 2nd generation seems to be where they figure out what's most important to customers and really tighten the screws there.