Editor's note: This is the sixth excerpt of an e-book on Apple by Jason Schwarz, an analyst at Lone Peak Asset Management in Westlake Village, Calif. Here are Part 1, Part 2, Part 3, Part 4 and Part 5.

[Link]

Even though the Chinese economy is helping to increase the size of the middle class, these young users still don't own their own computers. Internet cafes are open 24 hours a day, and for most of those 24 hours, they are packed with young customers engrossed in games, muovies, music videos, and chat rooms.

The Chinese are craving an inexpensive Internet device to further enable their access to information, entertainment and communication. Perhaps an alternative to the Western world's use of laptop computers will fuel a revolutionary wave of Chinese gadget obsession