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Technology Stocks : Apple Inc.
AAPL 270.37-0.4%Oct 31 9:30 AM EST

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From: William F. Wager, Jr.12/31/2005 12:47:16 PM
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Center Stage in '06:
Natural Gas, Iran, New Cancer Tests

Expect Surprises, Such as Rise
Of New Global Hot Spots,
More CEOs on the Griddle
Will Google Buy a Film Studio?

By CAROL HYMOWITZ
Staff Reporter of THE WALL STREET JOURNAL
December 31, 2005; Page A1

This much is certain about 2006: Big changes are in store.

**********************************************************

Technology: For years, people have predicted that some sort of computer would wind up in the living room, controlling entertainment. It hasn't happened. But barriers are weakening, and important beachheads could be established in 2006. Two companies to watch will be Apple Computer Inc. and Intel Corp.

Apple, which brought big changes to music with its iPod and online music store, has introduced a new version of its iMac computer with a technology called Front Row that comes with a tiny wireless remote for letting computer users access stored movies, music and photos. Outsiders speculate Apple will soon offer Front Row on more products, possibly on devices that could reside in the living room and connect directly to TV sets.

The company won't comment. An update on Apple's plans could come as early as mid-January, when CEO Steve Jobs will deliver a keynote speech at the MacWorld trade show in San Francisco.

Intel is betting it can be a middleman in the living room. It would combine new microchip technology for computers with a branding program called Viiv. The brand would certify that digital movies, TV shows and software have been adapted to be viewed on a TV screen and on other consumer gadgets carrying the brand. The Viiv effort will be launched at the Consumer Electronics Show kicking off in Las Vegas next week.

-- Don Clark and Nick Wingfield
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