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As a dedicated reader of newspapers since I was 5 years old, it’s really sad to see the downfall of this great American tradition. Print subscriptions are way down, ad revenue is drying up, and Americans are becoming more and more accustomed to the up-to-date news found on the Internet. The New York Times (NYT) stock is down below $4 a share. Gannett (GCI), the owner of USA Today is down to $2 a share. McClatchy (MNI), the owner of papers like the Miami Herald, The Sacramento Bee, and the Charlotte Observer, is down to $.45 a share. Mike Simonton, an industry analyst, says “In 2009 and 2010, all the two newspaper markets will become one-newspaper markets and you will start to see the one-newspaper markets become no-newspaper markets" (NY Times).

In the end, we all knew that mainstream reliance on newspapers couldn’t last forever but it’s still hard to watch. As if newspapers didn’t have enough to worry about, now they are about to get hit by the Apple (AAPL) train. Reports that Apple is ordering 10-inch touchscreens have been confirmed by Dow Jones, The Wall Street Journal, and Reuters. Many are speculating that these will be used for Apple’s new netbook but I think this device will be much different than what we’re used to seeing in the netbook space. As Apple has done with the Mac, the iPod, and the iPhone, I expect it to revolutionize this sector of the market.

There currently exists a major void of access with the Internet. I’ll call this void the newspaper void. Newspapers are the perfect size to read and they’re portable. The iPhone screen is not the perfect size to sit down and read a newspaper, I’m good for ten minutes of reading on the iPhone screen; anything more is too much for my eyes to handle. It’s great as a quick reference, but it is primarily a phone. My laptop has a good sized screen but the clunky keyboard and lack of universal WiFi access make it hard to use as a newspaper replacement. This new netbook/tablet/E-book reader/whatever you want to call it will fill a niche. Users will be able to take it on the subway, take it in the car, take it on the back porch, take it to breakfast, take it to the pool, take it wherever you would normally go to read a magazine or newspaper.

Apple has seen enough evidence that the netbook space is big enough for them to enter. IT research company Gartner expects PC sales to drop by 12% in 2009, but they don’t think that drop will come from netbooks. In fact, they are forecasting netbook sales to grow from 11.7 million units sold in 2008 to 21 million in 2009. In this recession, consumers are shopping price and Apple will benefit from having a sub $600 alternative. I would imagine that this device will come with a built in 3G Internet connection so that universal internet access is not a problem. It won’t have a keyboard like the other netbooks do, and it won’t be made to do much more than read the news from the Internet, watch television shows and movies, and play games from the app store. Once again, Apple is the true innovator of the technology revolution going on in this day and age.

Disclosure: Long AAPL.

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  • Bill Gates had a tablet in his office in 1996 and at that time he said this is where the future of newspapers is going. To say that Apple is an innovator is ridiculous. Gates and his team have had this idea for more than a decade. This news is so old, I wonder what credibility you have in this space.
    Weren't you the same writer who a few months ago was bragging about how wonderful the world is for short sellers of bank stocks?
    You spew nonsense on your best days.

    Jay Fredrickson

    i-95south.com
    2009 Mar 13 08:47 AM Reply
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  • Hey, @Jay Fredrickson

    One word: Newton.
    2009 Mar 13 09:12 AM Reply
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  • Yup, Newton.

    Nice try, Jay!
    2009 Mar 13 09:27 AM Reply
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  • This product is absolutely necessary (because newspapers in some format are needed) and therefore could be a real humdinger. Over on the MacDailyNews site a poster named Cascadians enthused thusly yesterday:

    "This is a demographically necessary product, an iTablet that is big enough for the aging population to see web pages clearly and watch movies and play games without eye strain.

    "This will be THE ultimate portable PDA / computer / gaming device. It will incorporate all the perks of the iPhone plus a better camera, videocam, videoconferencing, voice recognition, cut-n-paste, the whole shebang.

    "It will be far more than the sweet resurrection of the Newton and like the Newton it will be embraced by the medical community, scientists, business ppl and all those who want to stay connected and organized and keep everything easily accessible on the go at their fingertips.

    "The iTablet will be a major success, fun, extremely useful and a total gamechanger."

    To which I added: "Don't forget the e-book reader and digital voice recorder!" I believe that Amazon's recent announcement that it will make its Kindle-format items (including periodicals) viewable on the iPhone is a precursor to doing so on the iWidget (or whatever apple calls it).
    2009 Mar 13 09:39 AM Reply
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  • Sad to see the end of the newspapers? Are you kidding? They are imploding as is the rest if the media industry because people are sick of the lies, agendas and BS.

    Of course you so proudly bend over backwards to get on TV and deal with the crooks at thestreet.com that you are part of the problem. They'll take anyone willing to serve their agendas to screw investors. They especially like green guys like you because they use you as a puppet, without you understanding what's going on. Good luck.
    2009 Mar 13 09:56 AM Reply
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  • Tablet PCs from Microsoft have been a total bust. Tablet PCs suck. The software is horrible, the hardware has always been trouble prone and flimsy. The Apple device will be a real winner. Anyone who has used an iphone or ipod touch gets it. Microsoft crank up your copier! This will be tablet done right.
    2009 Mar 13 10:05 AM Reply
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  • I think he's on to something. Keeping in mind that Bill Gates tablet back in '96 was running Windoze, certainly there is plenty of room for innovation.

    Then compare this idea with the success of the Kindle - which shouldn't exist based on the "Bill Gates" comments above. Add in the ability for newspapers to sell advertising in their editorial space (which the Kindle does not allow) and you've got more than a strong niche, you've got real progress.
    2009 Mar 13 10:06 AM Reply
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  • Jay,

    What difference does it make what Bill Gates had in his office in 1996? Where do I buy one of those Bill Gates tablets? Did it have internet access everywhere? The point of the article isn't that Apple invented anything, only an really dense person would fail to figure that out. The article speculates about a complete product with key features being low price, built-in 3G internet, and Apple's focus on usability. That thing you are thinking of had none of those features.


    On Mar 13 08:47 AM jay fredrickson wrote:

    > Bill Gates had a tablet in his office in 1996 and at that time he
    > said this is where the future of newspapers is going. To say that
    > Apple is an innovator is ridiculous. Gates and his team have had
    > this idea for more than a decade. This news is so old, I wonder what
    > credibility you have in this space.
    > Weren't you the same writer who a few months ago was bragging about
    > how wonderful the world is for short sellers of bank stocks?
    > You spew nonsense on your best days.
    >
    > Jay Fredrickson
    >
    > i-95south.com
    2009 Mar 13 10:17 AM Reply
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  • microsoft has trouble innovating...it really doesn't matter if they have 'an idea' if they can't get it into production with a product that actually works well... think Vista... really.
    i expect something like a larger iTouch, maybe the size of a kindle... i read books on my iphone all the time and also listen to audio books there, but it's hard to speed read on the iphone because there's not enough viewable content all at once. i'd prefer a paperback book size to a 10 inch screen that was mentioned above but i'm sure Apple will make whatever they do great, lightweight, intuitive and reliable...and cool.
    2009 Mar 13 10:23 AM Reply
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  • Right on. But Apple's netbook will be aimed at the Kindle, not newspapers. A larger iPod can be the next big thing—a Mac that we keep with us anywhere, anytime. The so called MacCloud can be untethered, like the Kindle, providing 24/7 web access via 3G. But a hundred times better than the Kindle, this Mac can connect to ALL our files online.
    ... Anywhere, anytime access to our content via the web at MobileMe.

    Apple can charge whatever it wants for the MacCloud, for the connectivity, and for a subscription to MobileMe. And it can collect for purchases of software, books, audio, video, whatever, which can then reside online, always available to the MacCloud user. All of these revenues can flow directly to Apple.
    ... Money is the ultimate content stream.
    2009 Mar 13 10:28 AM Reply
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  • Jay, don't make everyone laugh. Apple has been working on tablets since the mid 1980's. Microsoft has done nothing innovative, they only, "years later" try and copy Apple's ideas. Apple invented the PDA space with the Newton, now you see Palm, Blackberry and of course the iPhone.

    Google around for "Knowledge Navigator" and you'll see Apple was over a decade ahead of Bill Gates and his copy cat criminals.

    Apple has set the direction for the computer industry since 1976, Microsoft has done nothing to contribute, so get your facts straight.

    On Mar 13 08:47 AM jay fredrickson wrote:

    > Bill Gates had a tablet in his office in 1996 and at that time he
    > said this is where the future of newspapers is going. To say that
    > Apple is an innovator is ridiculous.
    2009 Mar 13 10:56 AM Reply
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  • Gates style tablets are swivel screen laptops with limited stylus input. The main place I've see them used is in private schools where they are used as "techno-bait" to attract parents with lots of money. Generally they cost parents about $2k in addition to tuition. Few of the schools that I've visited have shown credible justification for their use. They are a gimick that require extensive/expensive infrastructure and staff changes to implement along with lots of charging stations and a copy of Norton Ghost to reimage the machines regularly with Vista.

    A true iTablet with good battery life would be a welcome product in many schools with few of the drawbacks of the Gates device.
    2009 Mar 13 10:58 AM Reply
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  • Forget Gates. By 1994, Knight-Ridder's Information Design Lab was working on a handheld newspaper reader. Chief Roger Fidler even had a prototype he was showing off. It never panned out, then KR was sold. I don't know what happened to the technology, or how far along it got.

    You can read a bit more here:
    <adverlab.blogspot.com/...;

    Before the lab was set up, individual KR newspapers were looking at electronic alternatives to printed newspapers, such as delivery by fax, dial-up bulletin boards (this was before the Web took off), etc.

    Many in the industry knew times were a-changin' way back then.
    2009 Mar 13 11:05 AM Reply
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  • Apple's device, whatever it is, would be just one more way to READ the news, which is primarily produced by reporters guess where? Newspapers.
    If newspapers go away, as so many people now want to predict, the flow of reporting also dries up on the internet, as well as tv and radio (which get much of their material from newspapers as well).
    The internet isn't a source of news, just a way to access it. Someone, in the end, has to finance the gathering of news.
    2009 Mar 13 11:18 AM Reply
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  • Cool!
    Hold and read it with two hands. Right thumb squeeze to move page down. Left thumb squeeze to move page up. Use your finger to highlight words, sentences and information. Talk into it to annotate or to remind yourself to pick up milk and toilet paper on the rare day it goes on sale. Plug in earphones to listen to music while you read. Finger gesture to fill screen with ten inches of Porn. Finger gesture again to zoom into NASDAQ for the latest price of Apple stock. All while standing on the Unemployment line.
    2009 Mar 13 11:44 AM Reply
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  • Oh, yeah. You don't have to stand on the Unemployment line anymore. You can log in from your cardboard box and bed of old newspapers.

    Oh, yeah, there are no more newspapers!
    2009 Mar 13 11:52 AM Reply
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  • [For Jay above to credit Gates demonstrates utter ignorance - and it's inexcusable to attack the writer the way he has.]

    Everyone who is using the iPhone, or Mac computers, know that this is going to be the product that truly revolutionises our computing lifestyles, of that there is no doubt.

    Apples' OSX is already shown to be a mighty flexible OS, and it is impossible to see it not creating a touch based game changer sitting between the laptop and the iPhone.

    Expect long long lines (queues)...
    2009 Mar 13 11:58 AM Reply
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  • One other thing, remember that Apple applied for patents on a camera sitting behind a screen.. then imagine the iChat video conversation with this device!
    2009 Mar 13 11:59 AM Reply
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  • In relation to the last gentleman with the bitter comment, I believe what the author here is trying to state is that apple is going to innovate the netbook line and do what as you put (bill gates had a tablet since 1996) Microsoft has failed and continually fails to do. Point in case. Vista. Point in case Windows 7. So to cut someone down about their belief in apple is simply childish. I believe your lack of respect towards the author only shows your bitterness towards apple.

    Thanks,

    Stephen Heywood
    thetechbuzz.net
    ttbn.thetechbuzz.net
    2009 Mar 13 12:04 PM Reply
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  • As an investor I want to see Apple continue to expand the list of innovative products that fill real needs that all humans world wide are dealing with. I hope that the price point is so low that individuals in third world countries will be able to purchase them. Universal access to information and knowledge will go a long way toward eliminating hunger, and religious intolerance.
    2009 Mar 13 12:08 PM Reply
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