When Apple thinks different, they mean it. When Apple launched iTunes in 2001 the recording industry was in full lawsuit-mode, suing the pants off of anyone it could get its hands on. Apple's software application probably didn't ingratiate it with the music industry because it represented a change in how consumers interacted with their music. Music became media and the digital revolution hit mainstream.

A few years later when Apple launched the iTunes Music Store it was motivated to do so to create a legitimate online media marketplace to increase sales of its popular digital music player, the now ubiquitous iPod. What happened next is nothing short of amazing. According to Wikipedia, the iTunes Store sold 25,000,000 songs in its first 9 months of operation. Today, Apple's iTunes is the leader in online music sales, owning 70% of the market internationally. Who says people won't pay for content?

Say what you will about Apple, but they have defined the hardware/software sweet spot and managed to create and dominate entirely new markets for digital content. They demonstrate, better than anyone else, how to marry intellectual property with hardware (theirs only) in such a way as to get us all interested in paying for content again—that's huge.

That's what makes the launch of the iPad (silly name) so interesting. Where is Apple taking us? You'll notice they didn't just launch a new piece of technology. They've integrated that technology within Apple's ecosystem (iPad syncs with iTunes, your local network and keeps you connected on the road with 3G connectivity) and extended the App store to this new platform, creating a new IP opportunity the sale of eBooks.

With iBooks Apple turns its marketing acumen towards this burgeoning online market. Proclamation's of the Amazon Kindle's death are perhaps premature but understandable. It's not that the Kindle will necessarily go away, it's just that with Apple's track record in a couple of years we'll all forget that the Kindle came out first the same way we forgot about all the other portable MP3 players that were on the market before the iPod came along.

Notice how newspapers feature prominently in Apple's marketing of the iPad. It just makes sense. Finally there's a technology that can add value to the distribution of news online, and even extend the user experience in innovative ways. You can bet your boots that newspaper publishers are relishing the idea of pushing their content via apps to the iPad. Suddenly a pay wall to a newspaper like the NY Times, Guardian, Globe and Mail, etc. makes sense because there's value in it.

Apple has learned a thing or two with the launch of the iPhone and that's reflected in the iPad's price point. The runaway success of the iPhone is in part due to its cost. Yes, it's a premium price to pay for a cell phone, but at least it's within the ballpark of smart phone competitors (unlike its computers—a criticism often levelled at the company's desktop and laptop models—although I think that arguments is losing its relevance).

Would I spend $500+ on a tablet that only runs one application at a time? Probably not. The iPad has all the hallmarks of a first generation product. A well-sussed 1st-Gen product, but 1st-Gen all the same. 2nd and 3rd generations of the iPad will offer more functionality, and higher horsepower performance to enable multi-tasking, etc. and that's where the real impact of something like the iPad will start to take hold.

Anyone that says you can't make money with digital content (RIAA, News Corp., et al) is intentionally ignoring Apple's iconoclastic innovation. They ignore Apple at their own peril.