On Wednesday, Amazon (NASDAQ: AMZN ) dropped the bomb expected since the
beginning of the year, announcing the coming of the Kindle Fire tablet. The $200
device represents what is the most promising alternative to Apple s (NASDAQ:
AAPL ) iPad to hit the market. Now comes the wait to see how consumers respond.
For investors wanting to cover their bases, however, its time to look beyond the
tablet market itself and onto those industries the tablet market fuels
particularly, electronic publishing. Here are five publishers that stand to gain
from the evolution of the tablet market. Pearson Financial Times publisher
Pearson (NYSE: PSO ) has made an impact on the electronic publishing world
during the past three months. In June, when Apple instituted new rules for
magazine and book sellers requiring all partners to sell subscriptions and pubs
through iTunes and the App Store giving Apple a 30% cut of each sale, the
Financial Times broke off and opened a tablet-specific version of its website.
The company reported last Friday that the web version of the paper has a total
of 700,000 users now , a number thats bound to increase provided the web paper
works on the Kindle Fires browser. Pearsons Penguin Group also already enjoys
brisk business on Amazons existing Kindle e-reader, so Fire should continue the
trend. McGraw-Hill The affordability of Amazons Kindle Fire and the drive to
lower tablet prices following the liquidation of Hewlett-Packard s (NYSE: HPQ )
ill-fated TouchPad mean tablets are quickly going to become more prominent among
students at every level of education. For an educational publishing powerhouse
like McGraw-Hill (NYSE: MHP ), a company that saw its business increasingly
shift from print to digital in 2010 , more tablet-using students mean even
greater digital sales going forward. It might not climb back up to the $70 per
share it traded at in 2007, but it should help continue the companys steady
growth over the past 12 months.
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