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Apple has a history with Jobs of being extremely innovative and synergistic with software.
If the concept comes to fruition, I would imagine a natural tie-in with iTunes and a tablet that would embrace Wi-Fi, iTunes movie downloads, iPhoto, and of course the iTunes music facet. Books would be a big addition and if along with a full editable suit of Adobe Acrobat for PDF's it would have a lot of promise. The big advantage for Apple, like Amazon and Barnes & Noble is to tie into existing ecommerce portals. I don't see them doing the book niche only, but obviously to compete on price it may be limited as to all the features it could have. Like the iPhone, it will most likely be quite innovative in the software end, since the iPhone's appeal to some extent is that it does so many things in addition to being a phone.
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