>>Do you have any idea how hard it is to waterproof electronics?
It is hard, but Apple has $117 billion in cash. They could make an elegant and waterproof smartphone if they wanted.
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Yes, and if a significantly large portion of the market was clamoring for a waterproof smartphone, Apple probably would make one.
I believe it was Steve Jobs who said that people don't know what they want until you give it to them.