This picture says it all

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But with sixteen times the memory, eight times the storage, and more than double its raw computational power. All in just a tiny fraction of the iMac’s size and at almost half the price. It truly boggles the mind. Back then, if you told this to anyone, they would have thought you were nuttier than Mel Gibson on speed.

It’s even more amazing to see how this tiny little thing has dwarfed the Mac. In 2009, Apple sold 10 million Macs—including the desktop and portables—compared to a whooping 45 million iPhones. And the 45 million is not counting the other iOS devices. Next year, the iPad alone is expected to surpass the sales of all Mac computers combined.

The difference in terms of revenue is about the same, so it’s not surprising to see iOS development at the core of their World Wide Developer Conferences. The usual suspects may scream, but the iPhone 4 and the rest of the iOS devices are now not only the bread and butter of the company, but also its heart.

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