The product Apple revealed yesterday was largely what most people expected. Called the iPad (well, that name probably wasn’t expected), it is slim and elegant, engineered with meticulous care to do a few things well: deliver the internet, display movies and photographs, play music and serve as an electronic reading device. The latter capability was revealed about halfway through Steve Jobs’ launch presentation, not quite an afterthought but lacking the marquee position of an A-list feature. As Jobs remarked several years ago when dismissing Amazon’s Kindle, people don’t read anymore; certainly they don’t buy books the way they buy music, movies and TV shows. Perhaps this justified the middling prominence of the iBooks application and its accompanying online bookstore, which aims (like the Kindle) to do for reading what iTunes and the iPod have done for music. And perhaps that explains why one of the day’s most significant announcements was made as little more than an aside. “We are also,” said Jobs, not sounding very excited, “very excited about textbooks as well.”

Perhaps Jobs soft-pedaled this announcement because he knew it wasn’t a surprise at all. The night before the iPad launch, McGraw-Hill CEO Terry McGraw spilled many of Steve Jobs’ beans in an interview with CNBC, breezily confirming that Apple was announcing a tablet computer running the iPhone OS, for which McGraw-Hill was collaborating with Apple to provide educational content. It might not appear entirely out of character for Jobs to lop McGraw-Hill out of his presentation, provided it had ever been included — Jobs famously dropped graphics chip vendor ATI from a keynote when they revealed upcoming Mac models before he could. And it prompts a mordant chuckle to imagine the look on Jobs’ face as he watched McGraw blithely steal his thunder. But I give Jobs the benefit of the doubt. It is likely that Apple’s negotiations with textbook publishers are still in progress, and that Apple will formally tout the iPad as an education tool at a later date. Because this arrangement is a very big deal — one that could potentially have a huge impact on both parties. Continue reading →