Apple (AAPL) won’t say what it is exactly that Drebin’s going to work on, though it’s a safe bet it’s related to the multicore graphics processors in which he has his expertise. After all, Drebin’s the guy that, according to his AMD bio, “led the architecture and design of many of ATI award-winning graphics processors” and “was responsible for the design of the graphics chip used in Nintendo’s GameCube console.” That’s quite a CV and one that suggests he’ll jibe well with the rock-star chip design team Apple brought in-house with its April 2008 acquisition of boutique semiconductor design company, P.A. Semi.

What that team is working on, of course, is anyone’s guess. Perhaps something to power that high-definition, touchscreen e-book reader it’s rumored to be building…

“There’s something I keep hearing, and I don’t think I’d rank it as high as a rumor, but it’s an interesting story that I keep hearing, that for awhile, trucks loaded with books would arrive at a loading dock on the Apple campus, and offload big, big, big, big, huge loads of books, and then the trucks would leave empty. And Apple does not have a 100,000-book employee library there on the Apple campus. So one is prone to believe that they’re doing something with these books, such as turning them into text for some purpose we can only guess at. There’s been a long-standing rumor that Apple has been silently preparing to open a bookstore on the iTunes store, and they want to make sure that they have a very large stock of electronic titles when they do open.”

Interesting, no? Especially in light of these new reports about 10-inch touchscreen devices. Could Apple be developing a new souped up e-book reader–a TouchBook, if you will? Something on which you could read books (in color), watch movies, surf the Web and create and edit documents? Something that would upend and redefine the e-book sector as we know it? And are the mysterious “books” to which Ihnatko refers really books and not the device themselves…

PREVIOUSLY:

• Coming Soon From Apple: Big Touch?
• iTablet: Apple’s Killer App for Higher Ed

After its official unveiling on Feb. 9, the e-book reader started shipping on Monday, and actually managed to grab much–but not all–of the hype that’s surrounded Twitter of late. The device has been met with much acclaim, though it’s by no means unanimous. Jeff Bezos made an appearance on “The Daily Show” Monday night to make his pitch to an as-yet unimpressed Jon Stewart. His main sell? “We’d make it cheaper if we could.” Roy Blount Jr., President of the Authors Guild, isn’t thrilled about the Kindle either, but his objection isn’t price–it’s that he believes the text-to-speech feature on the device threatens the audio book market. Rather than engaging in battle with the Guild, Amazon (AMZN) decided to modify the Kindle’s software to make text-to-speech optional. Meanwhile, the Hearst Corporation announced development of its own “Kindle Kopy” aimed at capturing the newspaper and magazine market. The Kindle 2 itself has been shipping for just a week and it’s already gotten some print media looking over its shoulder. It remains to be seen, though, whether it’ll earn the moniker of “iPod for books.” Walt Mossberg’s comprehensive review of the device this week provided a glimpse into its actual pros and cons and some insight into the Kindle hubbub from a hands-on perspective.

Elsewhere, much of the news this week was about reorganizations in the digital space. BoomTown covered the much-anticipated Yahoo (YHOO) reorg, which was sketched out by CEO Carol Bartz for employees first in a post to the company blog, then elaborated upon in not one, but two, internal memos. Even BoomTown’s attention began to wander there toward the end. Must’ve been something in the water this week, because Time Warner’s (TWX) AOL kicked in a little reorganization of its own–CEO Randy Falco announced that Maneesh Dhir, head of AOL International, would be leaving the company and returning to his entrepreneurial roots, and ad head Greg Coleman announced a reshuffling of his own group. Over at News Corp. (NWS), upon official announcement of President and COO Peter Chernin’s departure, CEO Rupert Murdoch alluded to a reorg sometime in the future, and an immediate commitment to “streamlining” the business.

In Mossberg’s Mailbox this week, Walt answered questions about transferring data to an iPhone, giving Vista a dedicated graphics card, and using TrueSwitch to transfer email accounts when switching ISPs. And in the Mossberg Solution, Katie Boehret took a look at the ways different mobile companies back up your data and give you access to it.

More next week.

Kindle 2’s experimental text-to-speech feature is legal: no copy is made, no derivative work is created, and no performance is being given. Furthermore, we ourselves are a major participant in the professionally narrated audiobooks business through our subsidiaries Audible and Brilliance. We believe text-to-speech will introduce new customers to the convenience of listening to books and thereby grow the professionally narrated audiobooks business. Nevertheless, we strongly believe many rightsholders will be more comfortable with the text-to-speech feature if they are in the driver’s seat.

Therefore, we are modifying our systems so that rightsholders can decide on a title by title basis whether they want text-to-speech enabled or disabled for any particular title. We have already begun to work on the technical changes required to give authors and publishers that choice. With this new level of control, publishers and authors will be able to decide for themselves whether it is in their commercial interests to leave text-to-speech enabled. We believe many will decide that it is.

The move comes on the heels of a meandering New York Times editorial in which Roy Blount Jr., president of the Authors Guild, argued that the Kindle’s roboticized nondramatic book readings are a threat to the audio book market.

Kindle 2 can read books aloud. And Kindle 2 is not paying anyone for audio rights. True, you can already get software that will read aloud whatever is on your computer. But Kindle 2 is being sold specifically as a new, improved, multimedia version of books–every title is an e-book and an audio book rolled into one. And whereas e-books have yet to win mainstream enthusiasm, audio books are a billion-dollar market, and growing. Audio rights are not generally packaged with e-book rights. They are more valuable than e-book rights. Income from audio books helps not inconsiderably to keep authors, and publishers, afloat….You may be thinking that no automated read-aloud function can compete with the dulcet resonance of Jim Dale reading ‘Harry Potter’ or of authors, ahem, reading themselves. But the voices of Kindle 2 are quite listenable….And that sort of technology is improving all the time….no part of my voice is competing with my own audio books yet. But people who want to keep on doing creative things for a living must be duly vigilant about any new means of transmitting their work.”

Ah.

The crux of Blount’s argument, then, is not so much that the roboticized nondramatic book readings of the Kindle threaten the audio book market today, but that they will in the future when they better approximate the human voice. We must be vigilant about any news means of transmitting our work. And given that, wouldn’t it be prudent to rethink the way authors license and profit from their work? That seems a reasonable point and one worth discussing. After all, we’ve seen this situation time and time again, all the way back to John Philip Sousa and player piano music rolls. In fact, if you think about it, the Kindle’s text-to-speech function is a sort of player piano for books. And if you take that view, these words from Sousa, penned back in 1906, still resonate today:

For the life of me I am puzzled to know why the powerful corporations controlling these playing and talking machines are so totally blind to the moral and ethical questions involved. Could anything be more blamable, as a matter of principle, than to take an artist’s composition, reproduce it a thousandfold on their machines, and deny him all participation in the large financial returns, by hiding back of the diaphanous pretense that in the guise of a disk or roll, his composition is not his property?

Do they not realize that if the accredited composers, who have come into vogue by reason of merit and labor, are refused a just reward for their efforts, a condition is almost sure to arise where all incentive to further creative work is lacking, and compositions will no longer flow from their pens; or where they will be compelled to refrain from publishing their compositions at all, and control them in manuscript?  What, then, of the playing and talking machines?”

What then of the Kindle?

380,000 Kindles sold. That’s double Mahaney’s May prediction. And it’s an important number historically. “In its first year, that’s exactly how many iPods were sold,” Mahaney wrote. “Turns out the Kindle is becoming the iPod of the book world.”

But is it really? And on what sort of data is that pronouncement based? Amazon (AMZN) itself has disclosed no actual sales data for the Kindle. The company said only that the selection of titles available for the device has jumped 67 percent since its launch. Surely it’s impossible to extrapolate sales of 380,000 from that figure alone. So on what other data is Mahaney relying here? Just this, apparently:

1. An anonymous source recently told TechCrunch that Amazon has shipped 240,000 Kindles. That’s shipped, not sold.
2. Kindle tops Amazon’s Bestsellers in Electronics list
3. Kindle has more than 4,000 customer reviews, quite a few of them positive.

Not exactly an abundance of hard data, is it? Which is not to say that the Kindle isn’t well on its way to becoming the iPod of the book world, just that we won’t know for certain until Amazon tells us with hard sales figures.

“We admit having very limited visibility into the current ramp of the Kindle,” he writes. “And there is the obvious point that Kindle sales could easily cannibalize existing AMZN book sales. But we believe the broader point is that it is not unreasonable to see the Kindle as having a material impact on AMZN’s revenue–low single digits–within two to three years. That may not sound like a lot, but given the company’s current $20 billion revenue run rate, that’s impressive.”

Sure is. If you have hard metrics on which to base such a claim. Sadly, that’s not really the case here. Because Mahaney’s estimate is based on, get this, Kindle’s sales ranking on Amazon’s site and the number of customer reviews it’s been given. From those stats, and Amazon’s apparent difficulty in keeping up with demand for the device, Mahaney figures that 10,000 to 30,000 have been sold in about three months. And then, referencing iPod adoption rates, he extrapolates his figure of $750 million by 2010 from that. Seems a jacktastic stretch of the imagination, doesn’t it?