[Types yesterday originally as an internal email]

$500 bucks a pop isn't going to make apple a ton of money on the iPad on margins.

But they are buying themselves into ubiquity via volume production and critical mass for media consumption on the device.

The app store is going to make them more money than the device itself -- easy.

I've been tracking the usage patterns of a few friends with Kindle.  Microtransactions on these devices are crazy impulsive and lucrative.

The print/newsprint folks are going to be all over this as their digital content delivery savior. 

The text book companies are going to see this as another interesting value add platform for schools.

The other reason the iPad will win is because its the ultimate gaming device.  Hands down.  Digital software delivery + Multi-touch + massive screen compared to the Nintendo DS + "subsidized" by productive uses of the device = a DS and PSP killer.

Pricing this thing at $500 bucks right out of the gates was the killer move.  Establishing ubiquity and a price point that the PC knockoffs can't really compete too much on a price basis brilliant.  IMHO: network effects and custom apps for this new form factor is the key to winning and creating a brand new category of usage and demand.

This is as important as the iPhone.  What the iPhone did to cell phones, is what the iPad will do for print, games and media consumption.

Steve Jobs just pwned Kindle, Nintendo DS, and any/all tablet PCs.