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Newsweek: Apple A “Game Changing” Business Despite Recession

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Newsweek has its pom-poms out, leading a cheer for team U.S.A. This week’s cover story about how business is bouncing back for the “comeback country” cites Apple as a company whose innovation turned profits, despite the downturn, comparing the iTunes model to the efforts of Thomas Edison.

But more important is the rise of systems innovation, like Thomas Edison and George Westinghouse building electrical systems. “That leads to new models of infrastructure and new kinds of consumption.”
Apple launched the iTunes Music Store in April 2003 with a single product: songs selling for 99 cents. Seven years later, iTunes is a much larger business: hardware like the iPhone, iPod Touch, and iPad; audiobooks, movies, ringtones, apps, and e-books.

It’s a boon for retailers, movie studios, independent coders, analytics firms, and accessories makers—the market for cases, sleeves, and headphones for i-devices is north of $1.5 billion annually. In late March, the venture-capital firm Kleiner Perkins Caufield & Byers doubled the size of its two-year-old iFund, which backs app makers, to $200 million.

Summing up the 2,561-word pep talk — where Google and Apple are hailed as the new iconic American brands, taking the place of Chevrolet and McDonald’s (you pick which is which), the journalists conclude:

“If the U.S. continues to adapt as it has, and if it produces a few more game changers like Google and Apple, there’s no reason that the expansion that started in July 2009, against all the odds and predictions, can’t last just as long.”

Via Barron’s

Straight From Steve Jobs: No More iPhone 2G Support

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Steve Jobs appears to still be banging out email replies to regular Joes and Janes. His latest customer missive was sent out to German Apple owner Niko, who wanted to know whether Apple would still be supporting or updating the iPhone 2g.

Jobs’ typical cut-to-the-chase answer? “Sorry no.”

The death knell for the 2g isn’t super surprising, it wasn’t part of the iPhone 4.0 presser and in device years, the original iPhone was pretty long in the tooth, discontinued in the US in summer 2008.

For those of you curious about what device Jobs used to send this answer, this one came from his iPhone, not his iPad.

Via Mac Stories

iPhone Apps Put Shroud of Turin in Focus

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Pilgrims trekking Italy to ogle the the Shroud of Turin, on public display for the first time in a decade, now have iPhone apps to help them see more.

Last time thousands of visitors flocked to peek at the yellowed cloth said to depict the face of Jesus, the best mobile option was probably some lame WAP browser.

This time around, iPhone apps can help negotiate the challenges of Italian travel — opening hours, monuments off the grid — with the flick of a finger.

iSindone (“sindone” is Italian for holy shroud) costs $0.99, and offers opening times, directions for getting there and info on the cathedral. There’s also a hi-res image of the shroud, rumored to be a medieval fake, which may give you a better look than the quick drive-by visitors get of the real thing.

Instant Turin, gratis for the next two weeks in honor of the shroud unveiling, promises to steer you clear of restaurants with dreaded tourist menus and get you to the Mole on time.

The official app,  also called Sindone, hasn’t been released yet. Registering on the web site will give you details when it launches,  we’re going to hope before the shroud display ends May 23.

And, if you need to walk off the chocolate and Barolo, try the sprawling gardens of  Venaria Reale outside Turin — just remember to get bus times and hours handy or printed out or you will risk getting stranded.

Video of the Day: Ultimate iPhone Augmented Reality

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httpv://www.youtube.com/watch?v=nvjlX7EqQWg

Ever wish someone could invent an app that would let you picture ketchup on your iPhone and douse the real thing from your smart phone on to your fries?

That’s the kind of whimsical hyper-reality Israeli pop band Izabo gets in their latest video for a catchy ditty called “On My Way.” Yeah, OK, so it may be awhile before  iPhone augmented reality means you can shave with a razor pictured on your device, but the effect is clever.

CoM talked to video director Shushu Spanier about surprisingly uncoordinated musicians,  borrowed iPhones and non-Mac equipment.

Reader Poll: Does the Name “iPad” Still Suck?

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A mousepad for sale at www.cafepress.com
A mousepad for sale at www.cafepress.com

[polldaddy poll=”2995715″] When the much-awaited Apple tablet device was christened the iPad in January, many people hated the name.

CoM readers were underwhelmed by the choice of iPad, 51% of the 1,380 readers who answered our poll on Jan. 27 gave the moniker a “meh” while just 17% said the name “rocks.”

For English speakers, the sanitary product association was immediate and launched a thousand jokes — including some printed for posterity on underwear,  for many non-English speakers, it was just one awkward vowel away from iPod.

Has time — and the fact that the device is almost in stores — made any difference?

Let us know in the comments.

Scammers Use iPhone to Plan Crime

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Two men charged in federal court with planting credit card skimmers at gas stations used an iPhone to plan the crime.

The Hummer-driving, iPhone toting pair hit eight gas stations in central Utah before an attendant noticed the devices. He provided security cam footage of Robert Fichidzhyan, 27, and Levon Karamyan, 55, both of California, installing skimmers.

They were busted after police searched their car, a damaged white Hummer H2, and found keys to open the skimming devices and an iPhone with a map of Richfield with gas stations marked on it. Reports didn’t mention whether it was a map or a gas-station finder app.

Goodbye Note Books: Colleges Offer Students iPads

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@Gizmodo
@Gizmodo

Before it even hits stores, several US colleges have pledged to give iPads to students along with their orientation kits.

iRush schools include Seton Hill in Pennslyvania, Northwest Tech in Kansas and George Fox University in Oregon, where freshmen have been handed personal computers along with class schedules for the last 20 years.

The iPod Touch has been making in roads in higher education since its 2007 release, but this is the first time a device has been promised to students before it is even on the market.

Not all iPad school programs are created equal. Students at George Fox can choose between the iPad and a MacBook Pro, students at Seton get both an iPad and a MacBook Pro, for those at Northwest Tech, iPads will replace the iPod Touch devices students were previously given.

While hailing how much the devices can free up weighty backpacks or “augment the learning experience,” some school officials admit they don’t know yet how much help an iPad will be for trig or anthropology homework.

“The trend in higher education computing is this concept of mobility, and this fits right in,” Greg Smith,  the university’s chief information officer, said in a press release. “At the same time, we realize there are a number of uncertainties. Will students struggle with a virtual keyboard? Can the iPad do everything students need it to do when it comes to their college education? These are the kinds of questions we really won’t know the answer to until we get started.”

iPad Apps? Devs Race to Be First

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CC-licensed, thanks Richard-G on Flickr.
CC-licensed, thanks Richard-G on Flickr.

When you first get your hands on an iPad April 3, there will probably be about 200 apps for sale for the touchscreen device.

The San Jose Mercury news reports that a frantic “land grab” is taking place as software developers race to be among the first apps available. These early settlers may make the most profit.

“It’s definitely going to be important to be first out there,” said Steve Demeter, a San Francisco developer whose puzzle game Trism was among the first apps in the App Store after it launched in July 2008. He says he made $250,000 in the first two months. The instant success enabled him to leave his day job and found  app company Demiforce.

quit his job writing software for Wells Fargo and start his own app.

The iPad app competitive terrain is uneven, however. A few lucky developers can test their magic on iPads, others have to use an iPad simulator.

“I would like to say I have one in my hand, but I don’t,” said Jeff Whatcott, senior vice president of marketing at Brightcove, an online video platform that has created the technology to allow Web sites to run video on the iPad using Apple’s required HTML5 standard.

Some early pioneers to iPad territory — hoping to launch with the device on Saturday — may include an app from the crew who created Ocarina and Ngmoco games “We Rule,” “GodFinger” and “Charadium.”

Apple Store Workers Also Await Hands-On Time with iPad

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CC-licensed, thanks to Mike Licht, NotionsCapital.com
CC-licensed, thanks to Mike Licht, NotionsCapital.com

The person who sells you the iPad on Saturday will probably be seeing it for the first time, too.

Keeping in line with air-tight secrecy around new product launches, Apple retail store employees have not had any hands-on time with the new touchscreen device.

Reuters reports:
Apple store workers say they have yet to see or touch the iPad, even though the launch is just days away and they are being trained and encouraged to talk about Apple’s newest device with customers.

“We haven’t seen it; we never do” before a product is launched, said one employee, who asked not to be identified because workers are barred from speaking with the media. “Every store employee I know, including the managers, they haven’t seen it.”

If Apple follows the same route for the iPhone launch, store workers may see it an hour before it goes on sale.

And presumably, the iPad blackout doesn’t extend to genius types who will be helping customers set up their just-purchased devices.
Reuters also notes that while Apple store workers get 25% discount on iPods and Macs, they get no discount on iPhones and it’s uncertain whether they’ll get something off the already priced-to-move iPad.

Via iPhone Freak

Elan Asks to Block iPad Imports Over Screen Patents

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Taiwanese chip and touchscreen maker Elan Microelectronics Corp. has asked the U.S. International Trade Commission to ban the import and sale of some Apple Inc. products —  including the almost-in-your-hands iPad —  alleging patent infringement.

Apple’s iPhone, iPod Touch, MacBook, Magic Mouse and iPad use technology which the company claims infringes Elan’s patent “352” granted in 1998 for detecting the simultaneous presence of two or more fingers, Elan said in an email statement today.

“Our goal is to protect our technology and to stop sales of those products in the U.S.,” Elan spokesperson Dennis Liu told Bloomberg.

This isn’t the first time Elan, which bills itself as the “smart human interface expert,” tries to give Apple the eFinger: they filed suit against Apple in a California court over another touscreen patent, “353,” in April last year.

Apple has not yet commented on the suit.

One thing is certain: patent lawyers on both continents will be keeping a shine on their shoes. On March 2, Apple filed a complaint with the ITC against Taiwan’s HTC Corp. alleging its patents were breached, though the cases are not related.

iPod Co-Creator Exits Apple for Green Tech

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After nine years, iPod co-creator Tony Fadell has opted to exit Apple to get a hand in “green” tech.

Fadell is credited with hatching the idea of a hard-drive-based digital music player in the 1990s.  He first took the concept to Real Networks, but left after just six weeks due to clashes with CEO Rob Glaser.

Fadell found fertile territory for the project at Apple, where he was the first member of its iPod hardware engineering team in 2001. Working with Jon Rubenstein, Michael Dhuey and Jonathan Ive in under a year, the iPod was born.  

Fadell was was promoted to vice president of iPod engineering in 2004, then named senior vice president of the iPod Division in April 2006.

His final exit isn’t that much of a surprise: Fadell stepped down from that position in 2008, staying on in an advisory role to Steve Jobs.

The forty-year-old Fadell kept mum about the motives behind his decision but told the New York Times that he was saying adios to Apple to advise companies and pursue private investments with a focus on green technology.

“My primary focus will be helping the environment by working with consumer green-tech companies,” he said. “I’m determined to tell my kids and grand kids amazing stories beyond my iPod and iPhone ones.”

Steve Jobs: “Most Valuable CEO” Worldwide?

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CC-licensed, thanks Macinate on Flickr.

Steve Jobs once again made Barron’s annual list of the 30 most respected CEOs worldwide.

Jobs, however, stands out among the global tycoons — other repeat honorees include Jeff Bezos of Amazon.com and John Chambers of Cisco — being called “probably the world’s most valuable CEO.” His career is called “cinematic” and on the eve of the iPad roll-out, Barron’s says, “America could use 1,000 more like him.”

Praise aside, unlike many other rankings, this one isn’t a popularity contest but is based on stock performance.

Here’s why, for Barron’s, Jobs just may be the MVP of the business game:

“Probably the world’s most valuable CEO is Steve Jobs of Apple, as shown by stock dips on news of his medical problems. Apple recently hit a record, with a market value topping $200 billion, a reflection of the Street’s confidence that a healthy Jobs (at least from what we can tell) continues to keep Apple ahead of the game. Jobs likely accounts for $25 billion or more of Apple’s market value.”

This is the latest accolade for Jobs, who was also named most admired celebrity entrepreneur and CEO of the decade recently.

Via Apple Insider

Need Answers? Here’s the Steve Jobs Advice Generator

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Whether questions like “Will the iPad will live up to its hype?” or “Should I stay or should I go to the Apple store?” are what keep you on edge, now you can ask Steve Jobs.

Head over to Ask El Jobso, the oracle for Apple lovers.

The random response generator was devised by the team at The Apple Lounge after one of their bloggers got a one-word answer from Jobs, generating a ton of  news stories last week.

Kinda like the Magic 8 Ball for Apple addicts, some of the answers generated are from real email answers that the King of Cupertino has recently fired off to people.

Let us know if El Jobso solves your dilemmas big and small.

Outside US, iPad Hits eBay Before Stores

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An iPad on eBay.co.uk sells for nearly twice its US retail price.

Although Apple has slashed international shipping times for many countries, eBay auctions may bring iPads to early adopters before they can buy them in stores.

In Italy, where the official launch date hasn’t been specified beyond “end of April,” there are dozens of iPads for sale on eBay, the Apple Lounge found, where those willing to risk buying them online might get their hands on the device a few weeks early.

That same end of April date is also expected for the UK, Australia, Canada, France, Germany, Japan and Spain and Switzerland.

A CoM search found the same scenario on eBay around the globe from France, Germany, Turkey, Brazil to New Zealand: vendors pre-selling iPads before Apple at a mark up. eBay currently lists 2,650 iPads for sale on its international circuit, in addition to the country markets.

The 64BG model pictured on eBay UK above costs $699 from Apple but the price requested by the indie seller is nearly twice that, $1,050 plus shipping.

Due to what used to be long lead times outside US borders, black market Apple products flourished as fans have had to wait years to buy them from official retailers.

Of course, a healthy dose of caveat emptor is in order: best case scenario, these are the real deal pre-ordered in the US. Worst case: they’re pricey knock-offs.

Anyone willing to take a chance (and spend the cash) for an eBay iPad?

Magazine iPad Ads a Hot Commodity

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A prototype Best Buy ad on an iPad tosses in a camera flash along with product info.@WSJ
A prototype Best Buy ad on an iPad tosses in a camera flash along with product info.@WSJ

Brick-and-mortar media may seem tepid about the iPad, but their sales people are not.

According to the Wall Street Journal,  interactive iPad ads are selling for figures reminiscent of their paper counterparts, back before magazines made the endangered species watch.

Both Time and The Wall Street Journal are charging — and have sold — iPad ads costing from $200,000 – $400,000, depending on the length of the ad run.

Time will charge $200,000 for an ad in the first eight issues. Clients so far include Unilever, Toyota and Fidelity and three other unnamed “major advertisers.”

Ads in the pricey iPad edition of The Wall Street Journal cost $400,000 for four months.  Coke, FedEx and four other “major advertisers” are already on board.

People magazine said it took just two days to line up six advertisers for the first three months of its iPad edition, which won’t even launch until late July.

“Mind-blowing” games, video and interactivity are getting ad folks to write checks, Steve Pacheco, FedEx’s director of advertising, told the Journal. “You are taking something that used to be flat on a page and making it interactive and have it jump off the page.”

Via WSJ

Police Offer DNA Kits to Curb iCrimes

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Selecta's home DNA kit.

Police in rural England are offering kits that capture DNA traces so locals can mark high-tech valuables such as iPods in the hopes of preventing thefts.

The CSI-worthy plan comes from cops in Fleggburg, an idyllic-looking village of 909 people in Norfolk, England.

Similar to the home kit pictured above, the product made by Selecta consists of a water-based adhesive containing a locked-in DNA code, a UV tracer and a series of microdots which can be easily applied to property “such as a TV or an iPod,” police said.

The fluid marks the property with a unique code which is revealed when scanned with a UV light. The DNA marking allows police to place the burglar at the crime scene, which could increase chances of a conviction.

Steve Jobs Answers Email Via iPad

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It’s not easy being Steve Jobs: one minute, you’re the guy behind the world’s most admired company, the next you’re about to become a pin cushion turning a profit for a journalist as a sitcom.

Still, no matter what you think of Jobs, it’s cool that every now and then he takes a few seconds to answer email from everyday users.

He seems to have been busy with a lot of his famous, less-than-a sentence replies lately, but his answer to an Italian blogger at The Apple Lounge may be the first one he’s sent using an iPad. (Up until March 20, he was still using 3.1.2 iPhone OS.)

DIY Steve Jobs Paper Doll: Hip to Be Square

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@Jay Hauf
@Jay Hauf

Paper dolls aren’t exactly the macho-must have accessory, but you’d be forgiven for one of these gracing your cubicle.

Steve Jobs in paper dolly form comes with standard issue black turtleneck, jeans, wire-rimmed glasses and carries an iPhone. (Maybe in version 2.0 he’ll sport an iPad?)

The cut out for this cubed Steve Jobs paper doll, the handiwork of Jay Hauf, can be downloaded so that you can do a little desk origami and keep him always with you.

Or you can get creative, like Hauf, and design a cube in your likeness to pal around with the King of Cupertino.

Who you calling square?

Via iPhone Savior

Start Your Engines: First iPad Dev Camps

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Developers will gather at eBay offices in San Jose for a weekend event aimed at creating applications for the iPad.

Organized BarCamp style, the first iPad DevCamps will be held from April 16-18. In addition to new apps, DevCampers  — experienced Cocoa Touch developers, web developers, UI designers and testers — will also squeeze their cerebellums on how to best migrate Mac OS X applications and test and optimize iPad applications. The weekend workshop costs $50, but the cost may be offset by sponsors.

It’s organized by Raven Zachary, who runs iPhone agency Small Society and fathered previous iPhone DevCamps.

Not in Silicon Valley? Satellite dev camps are in the works around the US (Colorado, Portland, New York, Boston) and the globe (Brazil, Switzerland, Munich) check the list for complete locations.

Apple Cube Store Architect “Computer Illiterate”

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Bohlin outside the Cube. @Philadelphia Inquirer, Michael S. Wirtz

You don’t have to be computer savvy to understand the vision of Steve Jobs.

Architect Peter Bohlin who designed Apple’s epic glass cube for the Fifth Avenue store in New York is “a total computer illiterate” his partner Bernard Cywinski told the Philadelphia Inquirer. He still sketches on paper rather than by computer and prefers talking in person to text messages.

Yet Bohlin interpreted Jobs’ wish to create a kind of “clubhouse” for Apple fans so well that the Cube has become one of New York’s most-photographed landmarks.

Even though he’d never designed a retail space, Jobs chose Bohlin to design this Manhattan magnet for Apple lovers based on his work for the new Pixar headquarters and studios in Emeryville, California.

Jobs “didn’t care” about that handicap, said Karl Backus, the principal in BCJ’s San Francisco office who manages the firm’s Apple projects. That’s because Jobs thought of the stores not as retail spaces but as social spaces.

The iPad is Coming, But Where’s The Content?

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CC-licensed, thanks Richard-G on Flickr.
CC-licensed, thanks Richard-G on Flickr.

You may have beat the crowd to pre-order an iPad, but when you pick it up April 3, Apple still doesn’t know content will be available for it.

According to a Wall Street Journal report, Apple is “scrambling” to firm up content deals just weeks before the device ships.

All of the usual unnamed insiders say that Apple has had a hard time lining up TV programs, digital newspapers and other content before the launch as media titans weigh the advantages of jumping on the iPad bandwagon against the potential threat to current revenue streams.

Talks are still on, according to these Cupertino deep throats, to secure discounted TV shows.  iPad users would get $0.99 downloads instead of the $1.99 and $2.99 they pay now at the iTunes store. Deals with newspapers, magazines and book publishers have all been put on the back burner for now.

If the numbers insiders cited in the story are correct — hundreds of thousands of iPads have been pre-ordered and Apple could sell more iPads in the first three months than iPhones in the first trimester after debut– the content owners could soon be the ones scrambling.

What, if any, content do you consider essential for the iPad?

Via WSJ

Up Next: iGroups, Apple’s Social Location App

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igroups

Apple has devs to the grindstone for a new social networking app called iGroups.

Patently Apple reports that docs out today from the US Patent Office describe a new service that would work on your iPhone and probably MobileMe, too.

Let’s say you’re attending SXSW: iGroups would keep you in touch with your co-workers and friends by allowing you to share your location plus info and comment on events as they happen, greatly facilitating which parties or events are worth attending or already over.

To accomplish this, iGroups reportedly employs a sophisticated cryptographic key generation system to ensure security and privacy.

The patent also states that if one of group devices lacks true positioning technology, Apple’s MobileMe service would provide “virtual GPS” capability to that user so they can still know the whereabouts of other group members.

Would you welcome a geo-location social networking app from Apple, or prefer to stick to Gowalla or Foursquare?

Or do you plan to shun the “Where’s Waldo?” world altogether?

Via Patently Apple, The Next Web

Coming Soon: Steve Jobs, the Sitcom

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Fake Steve creator Dan Lyons just signed a deal to bring Steve Jobs to another small screen near you.

The half-hour series called “iCon” is billed by the presser as “a savage satire centering on a fictional Silicon Valley CEO whose ego is a study in power and greed.”

Making sure the barbs prick will be the job of Larry Charles, director of “Borat” and  “Religulous.” The single-camera show to be aired on cable channel Epix may borrow something in style from his work as writer and producer of “Seinfeld” and “Curb Your Enthusiasm.”

Charles said, “We are attempting to do nothing less than a modern ‘Citizen Kane.’ A scabrous satire of Silicon Valley and its most famous citizen.”

No word yet on air dates or iTunes availablilty.

Will you tune in or not?

Via Alltop, NYT

Commuter Delays? iPhone Tube Refund App Pays for Itself

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Londoners stuck in the tube now have a handy iPhone app to request ticket refunds.
Tube Refund, which costs $0.99, zaps off the request for riders whose journey is delayed over 15 minutes.

Depending on where you go and what time of day, a one-way tube ticket can cost from £1.80 to £4.00 ($2.75 – $6 circa) and a weekly pass £44 ($67) so the app could quickly pay for itself.

This is a great idea — though according to the London Underground rules, refunds only apply for delays “within our control” that last over 15 minutes.

Given that it’s the oldest underground railway in the world, it’s hard to know how much time riders spend in darkened tunnels is due to reasons beyond control of transport authorities.

Via London Evening Standard, thanks hackneye.

Online Publishers: iPad, E-Readers Will Have ‘Absolutely No’ Impact in 2010

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CC-licensed. Thanks to Rego on Flickr.
CC-licensed. Thanks to Rego on Flickr.

Traditional publishers may be feeling the heat to develop iPad apps and versions of their pubs, but online publishing execs are adopting a wait-and-let’s-see 2.0 attitude.

The Association of Online publishers polled its 1,500 members, finding them optimistic for 2010 — but not about e-readers or iPads.  Half of the respondents predicted strong growth of 10%+,  mainly from display ads and an uptick in video, with a number of smaller revenue streams adding to the bottom line.

When asked about the impact of e-readers and tablets in 2010, that sunny outlook was a bit scarce.

Here’s what they said in video interviews:

—Mail Online MD James Bromley: “These are still really really embryonic devices that are great and fantastic, and I want to be at the top of the queue to buy one and play with it. But we’re talking about a very, very narrow subsection of society that will have these in 2010. This is the time that we learn about these devices – ‘11, ‘12, ‘13 is when these might become slightly more mainstream.”

—Conde Nast Digital UK manager Emanuela Pignataro: “E-readers will be the novelty of 2010. I don’t think it is a short-term adoption – it will take years.”

—Thomson Reuters consumer GM Tim Faircliff: “I don’t think we’re quite there yet.”

—Incisive Media digital manager John Barnes: “The issue with tablets is, they’re not really servicing the needs of color, with graphics and diagrams – it’s a bit like version one of the iPod.”

Via Paid Content, thanks @kevglobal