www.apple.com/ipod/start

The technology rumor mill is busy grinding speculation regarding an Apple event Wednesday at which the culture-changing firm will unveil its “latest creation.”

“The irony is that it is no longer about hardware, it is about services that connect to the hardware,” Levy said.

“The iPod was just a media player but what made it special was iTunes and the online App Store.”

An Apple tablet would likely synch with iTunes and the more than 100,000 applications at the App Store.

Apple’s tablet is believed to be a notepad-shaped device with a 10-inch color screen that lets people browse the Web, listen to music, watch movies or television shows and also read electronic books and newspapers.

A tablet would be Apple’s first major product release since it came out with its winning iPhone

Despite Apple’s wizardry with creations embraced by mainstream culture as well as technophiles, it could be tilting against windmills by releasing a tablet computer.

“The real question is what will people do with an Apple tablet that they can’t do pretty well on some other device?” said NPD Group analyst Stephen Baker. “Anyone that has tried this has failed.”

The success of iPhones was “a no-brainer” because the innovative devices put telephone and rich Internet capabilities in people’s pockets, according to Baker.

Tablets, on the other hand, are awkwardly large to be carried as mobile devices and too small to compete with desktop computers and screens, especially for tasks such as movie viewing.

“What do I do, strap it to my dog’s back?” Baker said facetiously.

“I can’t sneak a peak at it when my kids are in a play or at a baseball game… I’m a hardware guy and this isn’t going to be a game changer.”

A Retrevo report release last week concluded that an Apple tablet priced at more than 700 dollars (US) would stop 70 percent of potential buyers from reaching for their wallets.

Apple could launch a tablet at a steep price but quickly discount it through subsidy deals with carriers or digital content sellers.

“Initially it will seem like a high price, but over time Ma and Pa will be able to buy it as well as rabid Apple fans,” Levy said.

Google could prove to be a formidable rival, with the Internet giant’s Android operating system built into a host of tablets shown off at a major Consumer Electronics Show (CES) in Las Vegas this month.

An Android Market featuring more than 20,000 applications tailored for devices running on the operating system is a growing competitor to Apple’s market-leading App Store.

“In many ways, Apple is running away with the prize and Google is establishing itself as a strong second,” Levy said.

Microsoft is also staking out territory in the tablet market, with chief executive Steve Ballmer using CES as a stage to tout a Hewlett-Packard Slate tablet built with the firm’s software.

“There really isn’t another compelling device out there,” Levy said. “As it did with the iPhone, Apple is competing in a category of one at this point.”

Expectation that the maker of iPhones and iPods is set to wow the world with a tablet computer is so rampant that the California company’s stock could suffer if it fails to deliver.

“This proposed Apple tablet will take the App Store and iPhone operating system and deliver it in a larger form factor instead of starting from scratch,” said Canada-based independent technology analyst Carmi Levy.

“Apple can take years worth of iPhone momentum and drive it right into what is essentially an iPhone on steroids,” he continued.

three years ago.

Online retail powerhouse Amazon.com beefed up its market-leading Kindle electronic reader devices just days ago in apparent preparation for an Apple onslaught.

Amazon pumped up royalties it pays to authors or publishers who offer digitized books for sale to Kindle users and invited software savants to craft fun or functional programs for the e-readers.

“Amazon may have won the e-book reader battle, but the war is about far bigger things,” Levy said. “It is about a device that can do many things as you bring your digital content with you.”

While the spotlight at the Apple event may be on a tablet, the success of such a device depends more on the “ecosystem” of applications and services than it does on how “sexy” the hardware may be, according to the analyst.

 Heady from the success of the iPhone and iPod, Apple is getting spanked with criticism, even mockery, by pundits who expected the company to change the world anew with its iPad tablet computer.

Critics and fans were rushing Thursday to fill the 60-day void between the unveiling of what Apple chief executive Steve Jobs hailed as a “revolutionary” device and the time the first models will begin shipping globally.

While some heralded the iPad as a powerful “Kindle killer” with multimedia capabilities that eclipse current electronic readers, others scoffed at the idea of adding to their lives a mobile gadget seemingly named for a feminine hygiene product.

“Clearly, women are not finding this name attractive,” said analyst Rob Enderle of Enderle Group in Silicon Valley. “The name looks like a mistake a man would make. Steve should have spent more time talking to his wife and daughters.”

Reaction by women echoed a video clip from an old skit by the Mad TV comedy television show about a fictitious high-tech tampon called an “iPad.” The video has gone viral since Jobs uncloaked the iPad on Wednesday.

The mixed reaction to the color touchscreen tablet was reflected in two of the most popular gadget websites.

Gizmodo published an “Eight things that suck about the iPad” story while rival Ubergizmo crowned the device “the best tablet ever built.” Newspaper industry sizes up iPad’s potential

Popular complaints included the lack of a camera, multi-tasking capabilities, a USB port, and support for videos made with Adobe Flash software.

Enderle recalled that “there is an extensive list of people who just pissed all over the iPhone when it launched.

“The iPad will advance a lot,” he said. “Generation three will probably be the killer product.”

It was a third generation iPhone, tied to an online store for fun applications, that catapulted the Apple smartphones to the top of the market and brought billions of dollars to the firm’s coffers.

“There are a number of things that have to come together to make this the ‘Jesus Pad’ people imagined,” Enderle said. “The iPhone wasn’t that great when it came out either.”

Apple worked its marketing magic and built up hype and anticipation before the iPad unveiling, but has left two months for pundits, bloggers and others to nitpick a device that Jobs said must be held to be appreciated.

Still, some technology analysts predict the iPad will be the best-selling electronics device of 2010.

Unveiling the notebook-sized iPad, Jobs admitted he was taking a gamble by trying to carve out an entirely new device category between the laptop computer and the smartphone.

“We think we’ve got the goods,” Jobs said. “We think we’ve done it.”

Reviewers were mixed on whether the iPad will be a smash hit like the iPod, which controls over 70 percent of the market for MP3 players, or the iPhone, which completely transformed the smartphone arena.

The tech blog of Germany’s Frankfurter Allgemeine Zeitung said that after months of pre-launch hype, “expectations for the new Apple product were so high they were difficult to fulfill.”

Spain’s El Pais said the iPad opens up a new avenue for content creators struggling to adapt to the digital era, while a Los Angeles newspaper referred to the device as a large iPhone without the phone.

Om Malik of tech blog GigaOm said the iPad is “made for the consumption of digital media: games, music, photos, videos, magazines, newspapers and e-books.”

He called iPad the “ideal device for today’s world.”

Claudine Beaumont, technology writer for Britain’s Daily Telegraph, hailed the sleekness of the iPad, its reading software and virtual keyboard.

“It won’t replace your laptop, but I think it may have sounded the death knell for notebook computers,” she wrote.

MG Siegler of tech blog TechCrunch, after playing with the iPad, said “it felt like I was holding the future” but may not be a “must-have” device yet.

“The iPod Touch is a significant step toward finally making tablets respectable,” Forrester analyst James McQuivey said in a blog post.

“But making tablets respectable should have been the least of Apple’s ambitions.”

Users eager to judge for themselves will have to wait two months before the first iPads are shipped worldwide at an entry-level price of 499 dollars.

Analysts said they still expect Cupertino, California-based Apple to refresh its MacBook notebook PCs soon.

Both Wolf and Hargreaves expect new MacBooks to be announced in the coming weeks, if not on Tuesday.

In July, Apple Chief Executive Steve Jobs said in a statement the company was working on several new products to launch in the coming months, but executives declined to give details.

Apple Inc (AAPL.O) is expected to unveil new iPod music players — and possibly price cuts — at a media event next Tuesday but may not launch a long-awaited update to its MacBook laptop computers until a later date.

Apple, which also makes iPhone mobile devices, e-mailed reporters an invitation to a September 9 event entitled “Let’s Rock,” which has an image of a man jumping in the air while listening to an iPod, with the words “playing soon.”

No further details were available from the company, which often sends provocative invitations to events that end up being product launches. Creating an allure around its brand has only helped drive Apple’s market capitalization above Google Inc (GOOG.O), despite fears about the weak U.S. economy, which is slowing consumer purchases.

“It’s got to be new iPods. That’s 100 percent certain,” Needham & Co analyst Charles Wolf said. “The only question I cannot answer is whether they will also do new MacBooks.”

Apple shares fell $3.34, or 2 percent, to $166.19 on Tuesday.

Pacific Crest Securities analyst Andrew Hargreaves said the stock fall was likely due to bearish broad sentiment, rather than any disappointment related to the invitation. However, he expects any changes to the iPod to be incremental.

“I’m not expecting anything revolutionary,” he said.

Apple’s iPod line needs to be refreshed and the price of its iPod Touch models need to be cut because they have a higher starting price than its iPhone, which includes a mobile phone and other features not included in the device, said American Technology Research analyst Shaw Wu.

The Internet-ready iPod touch starts at $299 in the United States, compared with $199 for the iPhone.

“Pricing needs to be adjusted downward toward market conditions. We are in a tougher economy. That’s what makes most sense,” Wu said.

Strong sales growth came after Microsoft cut prices for its game console last month.

Sales of the PSP seem to have slowed ahead of the planned launch on October 16 in Japan of a new model of the portable machine, Enterbrain said.

The new PSP-3000 will come with a built-in microphone and advanced LCD panel that is better suited for use outdoors and offers a shorter response time than the existing machine.

Nintendo will launch a new DS on November 1 that can take pictures and play music, potentially encroaching into the territory of Apple Inc’s iPod and iPhone.

Microsoft sold 53,547 units of the Xbox 360 in the four weeks to September 28, compared with 33,071 units of the PS3, data from Enterbrain showed on Friday.

Nintendo Co Ltd safely maintained its leading position in the Japanese console market, having sold 109,548 units of the Wii during the month.

Although popular in the United States, the Xbox 360 has been struggling to compete with the PS3 and the Wii in Japan, home to both Sony and Nintendo.

In a bid to lift sales, Microsoft on September 11 cut the price of the Xbox 360 Arcade, which comes without a hard disk drive, by 8,000 yen ($76) to 19,800 yen. It also lowered the price of the high-end Elite model by 8,000 yen to 39,800 yen.

Sony sells the PS3 with a 40-gigabyte hard disk drive for 39,980 yen, while Nintendo offers the Wii for 25,000 yen.

The Microsoft console also got a boost from Square Enix Holdings’ popular role-playing game, “Infinite Undiscovery”, launched in Japan on September 11.

In the handheld video game market, Nintendo sold 234,477 units of its DS, compared with 109,274 units of Sony’s PlayStation Portable.

The major US bookseller is challenging online retail powerhouse Amazon.com with electronic works readable on an array of platforms, including computers, iPod Touch MP3 players, and iPhone and BlackBerry smart phones.Barnes & Noble launched what it bills as the world’s largest online electronic book shop with virtual shelves holding more than 700,000 titles.

Early this year, Amazon made software available at Apple’s App Store that lets people read Kindle books on iPhones or iPod Touch devices.

The increasingly competitive e-reader market includes offerings from Japanese electronics giant Sony.

Barnes & Noble added that it will be the exclusive provider of “eBooks” for electronic readers to be released by Plastic Logic.

“We want to make eBooks simple, accessible, affordable and convenient for everyone,” said William Lynch, president of the book giant’s website BN.com.

“Today marks the first phase of our digital strategy, which is rooted in the belief that readers should have access to the books in their digital library from any device, from anywhere, at any time.”

Amazon staked out a place in the electronic book market with the release of Kindle reader devices in late 2007 and has more than 300,000 titles for sale at its website.

Omnifone has also signed content deals three other major music groups: Sony/BMG, Warner Music Group and EMI Group. A new music service named MusicStation, which will be suitable for 75 percent of mobile handsets available on the market that allows consumers to directly download an unlimited number of tracks to their cell phones for a small weekly fee from wherever they are will launch in Europe on Thursday. Omnifone said the service would be available on all 2.5G and 3G music compatible cell phones, which currently accounts for approximately 80 percent of the handsets sold in Western Europe. It will offer unlimited track downloads at 4 U.S. dollars a week, 2.99 euros, or 1.99 pounds in Britain, which includes data traffic charges. Omnifone Chief Executive Rob Lewis told Reutersit would take between one and 15 seconds to download a track and that phones could store between 100 and a few thousand depending on the phone. British firm Omnifone said it had signed content deals with the four biggest music groups in the industry and had agreements with 30 mobile operators in a bid to get a jump onthe much-hyped iPhone made by iPod maker Apple. It will launch first in Sweden on Thursday with Scandinavian operator Telenor. MusicStation will then roll out across Europe, the Asia-Pacific and Africa in the coming days and weeks. Omnifone is targeting 100 million phones in a year and can offer over 1 million songs. “It’s hard to imagine a more compelling music experience on mobile than MusicStation,” Rob Wells, of Universal Music Group’s digital division said. “It works on almost any phone, giving consumers the freedom to choose whatever device they want (and) it allows downloads wherever those consumers are.

The service will make its debut at more than 600 Starbucks company-operated locations in New York and Seattle on Oct. 2 and will be expanded to other major U.S. cities later this year and next.

The company has no immediate timeline for rolling out the service internationally.

 Currently, customers pay to use the Wi-Fi wireless Internet service provided by Deutsche Telekom AG’s T-Mobile at Starbucks’ U.S. stores. 

Seattle-based Starbucks, which already had been selling CDs in its stores, earlier this year launched its own label, Hear Music. It released the latest album by Paul McCartney in June and has also signed artists such as James Taylor and Joni Mitchell.

Apple Inc and Starbucks Corp. said on Wednesday they had reached an exclusive partnership that allows people to buy songs wirelessly from Apple’s iTunes music store in Starbucks coffee shops without paying WiFi connection fees.  

Apple’s new wireless iPod music player, iPhone or any laptop computer running iTunes, will automatically recognize the iTunes store without a connection fee when customers enter a Starbucks shop that has Wi-Fi access.

“I can’t tell you how many customers have come into our stores over the years and loved a song that they hear and asked our baristas, ‘What’s that song? I’d love to buy it,’” Ken Lombard, president of Starbucks’ entertainment division said.

“Getting free access to the iTunes Wi-Fi Music Store and the ‘Now Playing’ service at Starbucks is a great way for customers to discover new music,” said Steve Jobs, Apple’s CEO. “Imagine walking into a participating Starbucks, hearing a great song, and being able to instantly download it onto your iPod or iPhone. We think this is very cool.”

“With this partnership, we’re bringing Apple’s leadership in digital music together with not only our retail footprint, but the unique Starbucks experience, to offer customers a world-class digital music experience,” said Howard Schultz, chairman, Starbucks Coffee Company.

Apple Inc. said its profit jumped 26 percent in its fiscal fourth quarter as the newest iPhone outsold the market-leading BlackBerry from Research in Motion Ltd.

“We may get buffeted around by the waves a little bit, but we’ll be fine,” Jobs said.

Apple sold a staggering 6.9 million of its iPhone 3Gs in the quarter, more than the 6.1 million total first-generation iPhones sold. The iPhone launched July 11 and is available in more than 50 countries.

Research in Motion reported it sold 6.1 million BlackBerry smart phones in the quarter that ended Aug. 30.

Edward Jones analyst Bill Kreher said overtaking RIM in such short order was a “tremendous accomplishment.”

“It’s jaw-dropping,” Kreher said.

Apple also set quarterly records for Macintosh and iPod sales. Apple said it sold 2.6 million Macs and 11.1 million iPods, further allaying fears that the sluggish economy would weigh on Apple’s back-to-school sales.

Record notwithstanding, the Mac division dragged Apple’s revenue below the Street view. The company said Mac sales growth took a hit as educational institutions cut back on computer purchases.

For the current quarter, which ends in December, Chief Financial Officer Peter Oppenheimer gave a wide range he described as “prudent,” saying Apple expects to earn $1.06 to $1.35 per share on sales from $9 billion to $10 billion. Analysts surveyed by Thomson Reuters had been expecting a profit of $1.65 per share on sales of $10.57 billion.

Piper Jaffray analyst Gene Munster, speaking in an interview, called the guidance Apple issued “comical,” saying it calls for results that are flat from a year ago and ignores the explosive iPhone 3G debut. “It’s mathematically almost impossible,” he said.

Shares of Apple fell $6.95, or 7.1 percent, to close at $91.49. In extended trading after the earnings report, the stock leapt up $13, or 14.2 percent, to $104.49.

For the full fiscal year, Apple’s profit climbed 38 percent to $4.83 billion, or $5.36 per share. Revenue increased 35 percent to $32.5 billion.

Despite the blockbuster performance, which sent Apple’s shares soaring in after-hours trading, the company issued what it called “prudent” predictions for the current quarter, because of broader economic uncertainty.

For the three months ended Sept. 27, Apple’s profit climbed to $1.14 billion, or $1.26 per share, from $904 million, or $1.01 per share in the same period last year.

Sales jumped 27 percent to $7.9 billion from $6.22 billion in the year-ago quarter.

Cupertino, Calif.-based Apple’s profit topped Wall Street’s expectations, but sales missed. Analysts had expected the company to sell $8 billion worth of Macintosh computers, iPods, iPhones and other gadgets, for a profit of $1.11 per share, according to a Thomson Reuters poll.

On a conference call with analysts, Chief Executive Steve Jobs addressed concerns that economic weakness will eat into Apple’s business through the holidays and beyond.

Jobs said Apple’s customers are more likely to put off buying a new computer than to defect to other brands of PCs with lower prices. Apple, which is sitting on about $25 billion in cash, could use the downturn to invest in research and development, he said.