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Interview with Former Hong Kong Chief Secretary Anson Chan; iPad Sales Down; American Jeffrey Fowle Released By North Korea; Hong Kong Police Monitoring Social Media

Aired October 22, 2014 - 8:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong and welcome to News Stream where news and technology meet.

An American held in North Korean for months arrives home.

Plus.

(BEGIN VIDEO CLIP)

ANSON CHAN, FORMER HONG KONG CHIEF SECRETARY: What I'd like to say to Beijing, trust the people of Hong Kong.

(END VIDEO CLIP)

LU STOUT: One of Hong Kong's leading political figures tells me the protests have given her hope for the territory's future.

And iPad sales slump. Is the age of the tablet over already?

An American tourist held captive in North Korea for five months has just arrived back home.

Now Jeffrey Fowle landed at an air force base in Ohio a short time ago. A U.S. government plane picked him up in Pyongyang on Tuesday after

he was suddenly released. His alleged crime leaving a Bible at a club for foreign sailors.

Now Fowle was apparently granted a special dispensation by Kim Jong un. And the case against him has been dismissed.

Now officials in Washington say they don't know why Pyongyang decided to free Fowle, but they're urging North Korea to release the two other

Americans who are still in custody.

Now for more on this story, CNN's Paula Hancocks is live for us from Seoul. She joins us now. And Paula, again, the big question remains, what

led to Fowle's release?

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Well, Kristie, we have heard from North Korea, the state run media KCNA has issued a very

small newswire explaining what happened saying that basically North Korean leader Kim Jong un decided to release Jeffrey Fowle because of the repeated

requests from the U.S. President Barack Obama.

Now this is really a fairly clear signal as far as North Korea is concerned that they have done Washington a favor. So of course the

question is what will they want in return.

But what actually physically happened is it appears the Pyongyang decided to release him and indirectly contacted Washington and said come

and get him. So the government sent a plane onto the Pyongyang tarmac, obviously an interesting site to see a U.S. plane there. That doesn't

happen very often. And then Jeffrey Fowle was flown to Guam where he underwent evaluation. The State Department saying that he seemed to be in

good health and then back to Ohio where we have seen that very emotional reunion with his family.

So, of course a very happy day for the Fowle family, but it does remind two other families that their loved ones are not yet with them.

There are still two U.S. citizens being detained in North Korea -- Kristie.

LU STOUT: That's right, Paula, two Americans still detained in North Korea. So what is the latest word on Matthew Miller and Kenneth Bae?

HANCOCKS: Well, we haven't heard anything new about them today since we've heard about Jeffrey Fowle.

Just to give you a bit of context, Kenneth Bae is a former missionary. He was sentenced to 15 years hard labor. He's already served two years,

almost two years here in North Korea. That's the longest serving American according to his family since the Korean war. And he is basically in and

out of hospital. His health is failing, but North Korean says that he was accused and found guilty of trying to topple the regime through religious

means.

Now this is really a cardinal sin in North Korea. Any religious activities that are outside of state approval or state control will be

penalized heavily. And certainly experts are saying that the release of Kenneth Bae maybe the trickiest to negotiate.

And then of course there is also Matthew Miller, you can see there on the right. He was accused of hostile acts against the regime. He was

sentenced to six years hard labor just last month. And it's believed that he walked into the country, ripped up his tourist visa and claimed asylum -

- Kristie.

LU STOUT: So, this will be very, very tricky to negotiate their release. But learning from recent history, what does it usually take to

get Pyongyang to release Americans in its custody?

HANCOCKS: We have seen in the past very high profile Americans traveling to Pyongyang, ex-presidents like Bill Clinton, Jimmy Carter,

traveling to Pyongyang, paying lip service, negotiating or their release.

And of course this is what North Korea likes, they can play this very well domestically to show look at the power we have. We can demand that an

ex-president comes to our country and pays respects to us and then we release one of their own as a humanitarian gesture.

This didn't happen this time around with Jeffrey Fowle. So it is interesting to see obviously John Kerry, the secretary of State, saying

there was no quid pro quo and they haven't actually given anything in return. But of course it's a question of what will Pyongyang expect now

that they have done this seemingly humanitarian gesture -- Kristie.

LU STOUT: Paula Hancocks reporting live from Seoul, thank you, Paula.

Now also out of North Korea, yet another set of photos of the regime's reclusive leader Kim Jong un. Now state TV has released pictures of Kim

touring what it says is a new resort that will let scientists, quote, enjoy luxury under socialism.

It appears to be the latest attempt by Pyongyang to quell the rumors over the leader's more than month long absence from the public eye.

As with other photos released in recent days, Kim is seen holding a cane.

Now the World Health Organization's emergency committee is holding a third meeting to assess the Ebola outbreak.

Now testing for an Ebola vaccine is underway and trials could begin in West Africa by January. It is a truly international effort.

Now one potential vaccine developed in the U.S. is in clinical trial in the UK and Mali. And another vaccine, initially developed in Canada, is

underway in the U.S. State of Maryland.

But help cannot come soon enough for West Africa, one of the hardest hit countries is Sierra Leone with thousands of cases and 1,200 deaths.

Now ITN's Tom Clarke had this look at what life is like there.

(BEGIN VIDEOTAPE)

TOM CLARKE, ITN CORRESPONDENT: This is Crab Town, built on stinking estuary mud, just a short walk from the wealthiest parts of Freetown. A

settlement of single room shacks where life was hard enough before Ebola showed up just a few days ago.

Now, in the crowded and squalid conditions it's spreading unchecked.

The police and military are trying to enforce a rudimentary quarantine, but the government ambulances, which are supposed to collect

suspected cases before they infect others, have failed to arrive. Neighbors have called, but nobody comes.

We're now being taken to the home of a 10-year-old boy called Odate. His mother and sister have died Ebola, two days ago his father died. He's

been on his own in the house since then. No one has gone to collect him.

Odate has spent two nights sleeping in the rain outside his dead parents' home. We're with Red Cross workers who are trying to get help for

the boy, but as a suspected case only a team in full protective equipment can collect him.

For now, all they can do is give him food and water and keep calling for help.

Could you ask him how -- can you ask him how it's been the last couple of days for him?

UNIDENTIFIED MALE: He's not feeling good. We is sad about the deaths of his parents.

CLARKE: It's as if Ebola has put an invisible wall around this little boy who is in such desperate need of help. His neighbors don't want to

take him in, even volunteers who come here to help him can't get too close because of the risk of Ebola infection to them.

A local health worker tells me there are several other sick families just a few streets from where we're standing.

MUSA MANSARAY, COMMUNITY HEALTH WORKER: As I am talking to you, we have lost the life of another young baby about three months old just in the

neighborhood (inaudible) house, which we done the same thing, call upon doctors to come thus with no good responses.

CLARKE: Since we arrived in Freetown at the weekend, the number of reported Ebola cases has nearly doubled every day, collecting and isolating

new cases is still lagging far behind the spread.

Aid is now pouring into Sierra Leone, but conditions like these give Ebola the upper hand against any humanitarian response.

A few hours after filming Odate, we learned an ambulance finally arrived for this terrified boy.

Last night, Aminata Coroma (ph) died from Ebola bumping through the scrub to her home on the outskirts of Freetown, the volunteers have come to

take her body away. Her husband and father of her five children tells me he simply doesn't know how he will live without her.

He tells me she was the sole breadwinner. She paid for the house. She was the pillar of their family. And now he must watch as the burial

team prepare to give her the most dignified funeral this terrible disease allows. Their preparations are meticulous. Any contact with body fluids

could be fatal to them.

Going in to collect the Ebola dead is one of the riskiest jobs in the world right now. But these Red Cross volunteers know it's one that has to

be done, all the evidence suggests the majority of new Ebola cases are directly linked to people who had contact with a dead body. Burying people

quickly and safely is key to getting this outbreak under control.

After final checks, the cortege of goggles, masks and yellow suits goes to retrieve her body. The Red Cross are now carrying out 85 percent

of burials in Sierra Leone. And while safe burial like this is fundamental, so, too, is educating families about what to do if someone

else gets sick.

UNIDENTIFIED MALE: Anything would happen to you -- you get a fever, you get your body warm, you get there anything, yeah, nothing too much,

come out please.

CLARKE: As the virus leaves the rest of the world almost paralyzed with fear, this, the poorest part of Africa, simply can't afford to indulge

it.

Tom Clarke, Channel 4 news, in Sierra Leone.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And still ahead, Anson Chan led Hong Kong during its transition from British to Chinese rule. And we

get her take on where the pro-democracy movement goes from here. That after the break.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now the protests here in Hong Kong are in their fourth week and holding firm. That, despite talks between student activists and government

officials. Now some are trying to end the sit-in by breaking down barricades.

Now this is the scene earlier today in Mong Kok, it's an area that has seen frequent clashes between pro-democracy demonstrators and so-called

anti-Occupy protesters.

Now it's not known when or if the students and government officials will meet again. Now the government has indicated it will stick to the

controversial election plan for 2017 that will see a nominating committee vet candidates for the top post of Hong Kong chief executive.

Now earlier, I spoke to Anson Chan, the former chief secretary of Hong Kong. And I started by asking her what it will take to break the deadlock.

(BEGIN VIDEOTAPE)

CHAN: The government needs to indicate that it is sincere in engaging the public, particularly having taken us through this first stage sham

consultation.

If they want to persuade the students to remove themselves from the streets, they have to lay something on the negotiating table. And it is

(inaudible), there isn't room to maneuver, there is, even with the rigid framework handed by the NPC.

We have actually written, my group, Hong Kong 2020, we wrote to the government several weeks after -- before -- after the decision of the NPC

and we said we have some proposals. We're very happy to come along and discuss this with you.

You can see from yesterday's talk that unless and until you are prepared to really negotiate sincerely, you won't break the impasse.

LU STOUT: What about the Hong Kong student protest leaders. Do they need to be open to additional options like political change after 2017?

CHAN: Well, the point is before we get to after 2017, let's talk about what's going to happen in 2017. You've heard what our chief

executive has said about universal suffrage, the fact that poor people earning less than $1,800 cannot be trusted with a vote. So what hope do we

have? Not even after 2017.

LU STOUT: That was extraordinary when CY Leung said that, that he said defending -- saying that there shouldn't be an open nomination system,

because it would give the poor too much political power.

CHAN: I think the foreign press must have been aghast to hear this coming from the mouth of our chief executive.

LU STOUT: We were aghast. Why did he say that?

CHAN: Well, I think at long last he's reflecting what he truly feels, and that is that the vote can only go to the business elites.

LU STOUT: And do you think that has only galvanized the pro-democracy movement in Hong Kong?

CHAN: Of course. Of course. Now you're discriminating against half the population. I'm surprised that the community hasn't risen in arms to

protest at what CY has said.

But of course you notice that today he tried to put out a disclaimer, but it doesn't do any good.

LU STOUT: Now last night we saw that extraordinary moment, the live debate. There was a two hour debate between our one side top Hong Kong

government officials and these university student protest leaders, including Alex Chow. And it was livestreamed throughout all of Hong Kong

to the streets of Hong Kong and they were discussing the fate of democracy in Hong Kong.

When you saw that, how did that make you feel?

CHAN: Well, I think if you ask the community the clear winners of this so-called dialogue are the students. The reason being that the

students knew what they were talking about, they knew what their demands were and they were speaking from the heart.

Whereas, the government officials were simply towing the party line, and I doubt that any of them actually believe what they were saying.

LU STOUT: Are you proud of the students?

CHAN: Yes, I am very proud of the students. I have been very proud of the students ever since from day one of the demonstration.

I was in London and then I was in Budapest and in Prague, and every day I turn on the television and I see all these scenes about the

demonstrations in Hong Kong.

Nowhere else would you find students so well behaved, so disciplined, and so creative, actually.

LU STOUT: You have long been a champion of universal suffrage in Hong Kong, but do you feel that this is the moment where you are passing the

torch of democracy to a new generation these student protest leaders?

CHAN: Well, absolutely. I think the behavior of our young people gives me and a lot of Hong Kong people some hope about Hong Kong's future.

LU STOUT: You are proud, you are hopeful, are you also fearful? I mean, the world knows who Alex Chow and Joshua Wong, including Beijing.

Are they on a watch list? What could happen to them?

CHAN: Well, I am fearful that for as long as CY does not change his tune -- because he seems some hopelessly out of touch with community

sentiments, he's not speaking on our behalf, he's simply towing Beijing's line. So perhaps we need a new chief executive who at long last will stand

up for Hong Kong's best interests.

LU STOUT: Is there anything else that you'd like to add?

CHAN: Well, I'd like to say to Beijing trust the people of Hong Kong, trust our young leaders, they are our future. And use Hong Kong as a

testing ground for introducing full democracy.

(END VIDEOTAPE)

LU STOUT: now that was former Hong Kong chief secretary Anson Chan.

You're watching News Stream. And still to come, iPhone screens are getting bigger, while the iPad is not the darling it used to be. Is there

still a place in the market for tablets?

(COMMERCIAL BREAK)

LU STOUT: Coming to you live from Hong Kong, you're back watching News Stream. And time now for your global weather forecast and a check on

flight delays across Europe. Let's get the latest from Mari Ramos. She joins us from the World Weather Center -- Mari.

MARI RAMOS, CNN INTERNATIONAL CORRESPONDENT: Hey, Kristie. Here we are again looking at the remnants, the remnants of what was Hurricane

Gonzalo still causing some problems across Europe.

Now the flight impacts this time around I don't think are going to be as severe like what we had yesterday in places like London's Heathrow, for

example, but we're seeing them more widespread now, because that energy from that weather system continues to make is way across Central Europe now

moving more toward southeastern Europe.

And we're going to see some problems there later.

One of the new cities that we added in the last few hours is Zurich to this list. The winds are starting to pick up there. And you're going to

start to see some precipitation maybe in the higher elevations. I think the problem will be snow. I think Zurich will be fine as far as snowfall,

only rain headed your way.

But you see that area of low pressure right there, that's what's left of what was Hurricane Gonzalo. You can see that weather system continuing

to slide on down here all the way into the central Mediterranean, already even into parts of North Africa. And as it continues to move here into

southeastern Europe it's picking up a little bit more moisture, so we're going to see an increase in the precipitation, maybe even the potential for

some heavy rain and isolated tornadoes not out of the question for some of those areas.

In the north, though, the winds are calming down just a little bit. Still across Germany and through the Netherlands we have winds 40 even 50

kilometers per hour sustained, gusting higher than that.

Look at Marsailles, still at 65 kilometer per hour winds. That's pretty significant. And we're going to continue to see this trend over the

next few hours. And it'll just start getting better later tonight.

As far as the snowfall, pretty significant across some of these areas. And it's going to be hard to get there today, but once the weather begins

to settle down, I think later tomorrow, travel should become a lot easier. And those of you who are trying to get to -- get a little skiing done this

early in the season, I think you're going to have your fill there with a lot of fresh powder. But be careful because there are some pretty

dangerous, or hazardous weather conditions right now.

That area of low pressure will continue sinking farther to the south. This is where we're going to see that heavy rain and highest elevations

like places in Ukraine, for example, might see your first significant snowfall so far this season. And it is very early here just getting to the

late October season.

And notice the rain quite heavy as we head all the way down through the eastern Mediterranean.

So just quickly to recap, isolated flooding still possible as things settle there across the west.

We've had plenty of rainfall across parts of Japan. Remember that this is an area that has been just hammered over and over with some very

heavy rain. And we've seen a lot more of that just in the last 24 hours with this new weather system.

But the weather is starting to clear from west to east, so we'll still see some lingering rain showers. Most of that will begin to move offshore

as far as the heavy rain goes. But maybe in Tokyo still bring the umbrella overnight tonight and in through tomorrow morning. That may still be an

issue. And the air quality, by the way, has improved in Beijing. We've been talking about that for the last few days.

So let's go from two much rain like what we're seeing in Japan to not enough. This is the current drought conditions across Brazil. This is in

South America and the city of Sao Paulo, a city of, what, 20 million people. Now they're having a water shortage.

We have some pictures to show you while I tell you the story. What's going on here is they haven't had any rain. And they need the rain.

They've had a little, but a few sprinkles recently, but that's not enough to fill reservoirs like the one that you see right there. It's called

(inaudible) reservoir. And it's part of a series of reservoirs that they have, or dams, that they use for their drinking water. So now they're

seeing significant water shortages across this entire region.

Only three millimeters of rain have fallen in all of October so far against an average of 124. Now every single month, except for the month of

March, Kristie, has had below average precipitation so far. Yeah, and just little bit of relief in sight, only some scattered rain showers possible as

we head into the weekend. But that would be much needed rainfall.

LU STOUT: Yeah, a little bit of relief, but they desperately need water there. Mari, thank you.

And before we go, just stay there, a farewell from me and the team here at News Stream. Mari, you joined CNN back in the day May of 1999.

And after more than 15 years today is your last day. And Mari you have been -- and everyone will agree with me -- absolutely instrumental in

defining and delivering superb weather journalism for our audience. And you have covered it all from droughts to quakes, tsunamis, climate change.

And you have also been our go-to space geek. In fact, you are our queen geek.

And we always learn something when you're on the air.

So Mari, on behalf of everyone here at News Stream, we will miss you. Big hugs from Hong Kong. And take care.

RAMOS: Thank you so much, Kristie. You guys are going to make me cry. I'll be around. Kisses.

LU STOUT: We love you, Mari. Take care. I'll call you soon. Mari Ramos there.

You're watching News Stream. Oh, emotional moment. Still to come here on the program, I'll take you back to what's happening here in Hong

Kong as Hong Kong protesters voice their concern on the streets, but they have to be careful about what's said online. We've got that story next.

(COMMERCIAL BREAK)

LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching News Stream. And these are your world headlines.

Now fresh clashes are underway now in the Syrian border town of Kobani. A Kurdish defender says at least six of his fellow fighters have

died. The bodies of at least 10 ISIS militants have been recovered. Now ISIS is believed to have fired mortars into the city center while coalition

forces launched three airstrikes overnight.

After five months detained in North Korea, American Jeffrey Fowle landed in his home state of Ohio a short time ago. Now the 56-year-old was

arrested in May after Pyongyang accused him of leaving a Bible at a club for foreign sailors. Fowle was granted a special dispensation by Kim Jong

un and the case against him has been dismissed.

North Korean state TV has shown new photos of Kim Jong un. In these latest images, the young leader is said to be touring a new resort for

scientists. He was shown holding a cane, which is consistent with other pictures released by state media recently.

Now people opposed to the protesters who are camped out in Hong Kong have tried again to remove barricades surrounding the demonstration site.

Tuesday's talks between student activists and government officials failed to deliver anything concrete. It is unclear if there will be another

meeting to try to end the deadlock.

Hong Kong's protesters have used social media to organize and mobilize support. And now police are keeping a close eye on their online posts.

Paula Newton has more.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN INTERNATIONAL CORRESPONDENT: It is the lifeblood of the movement: the messaging, the posting, the texting, every device a vital

link that keeps protesters connected.

But police claim the online tether could also be inciting violence. Hong Kong police say they have now arrested two men accused of online

threats of intimidation. They've released few details, but say they are investigating. And, they warn, they are monitoring the internet closely.

CHIEF SUPERINTENDENT STEVE HUI, HONG KONG POLICE: All members of the public must abide by the laws of Hong Kong.

NEWTON: Recent posts that have their attention, direct threats to police officers and their families, and online chatter of plans to occupy

Hong Kong International Airport.

HUI: In an attempt to create chaos, such behavior is extremely irresponsible and must be strongly condemned.

NEWTON: But those who represent the tech and online sectors here worry the arrests are depriving protesters of basic rights and freedoms.

CHARLES MOK: HONG KONG LEGISLATOR: Did they take action because of the severity of the speech that was posted, or was it because of the fact

that they really want to scare other people from doing the same? And that to me is very troubling.

NEWTON: The freedom to what they want when they want online and on the streets has been a guiding principle of this movement.

JOHN LEE, STUDENT PROTESTERS: I think the politics is simply using that top-down (inaudible) to spread fear among Hong Kong people and to

suppress our freedom of expression.

NEWTON: Protesters like John Lee say they won't be intimidated as he posted criticism about Hong Kong's leader.

"No election rights for people making under 14,000 Hong Kong dollars a month? " That's what he posts on Facebook knowing someone could be

monitoring his every word.

Police say it's their job. Laws in the real world apply online, too. For protesters occupying the streets of Hong Kong, demanding more democracy

are also staking out a piece of real estate online, a place they say should remain free and open.

Paula Newton, CNN, Hong Kong.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And still to come, iPhones are getting all the love while iPad sales slump to a record low. Are

tablets becoming a thing of the past?

(COMMERCIAL BREAK)

LU STOUT: Now when the iPad appeared, many thought tablets would signal the end of PCs, but while PC sales are falling, so are sales of

iPads.

Now Apple sold more than 12 million iPads in the last quarter, but that is down 13 percent from the same period last year. That is the fewest

iPads Apple has sold in any quarter for two years.

Now Apple just unveiled the new iPads last week, but most tech pundits consider them minor upgrades, a far cry from the media attention that was

given to the new iPhones when they were launched last month.

So are we heading to an end of the tablet era? Now for more on that, we're joined now by our regular contributor Nick Thompson, he is the editor

of the New Yorker.com. He joins us now.

Nick, first, I need your analysis of the numbers here, the overall trend. iPad sales are slowing, but how so?

NICK THOMPSON, NEW YORKER.COM: Well, they are slowing. And Apple sales are declining, which is shocking. You know, we're just not used to

this at all in Apple numbers. Every time -- everything goes up. But now suddenly iPad sales are down.

Now it's not a horrific decline, right. They're still selling, you know, almost 13 million iPads in a quarter. That is a huge number. Other

companies would kill for that number. They sold 237 million over the last four years, that is an astounding number.

However, they're going down. And that is a big deal. And it does tell us a lot of interesting things about the way we use technology and the

way iPads will probably -- sales will proceed in the future.

LU STOUT: And also, expectations about how the iPad would change the world.

I mean, back in the day the mantra was the end of the PC. When the iPad launched, everyone was talking about the decline of personal

computers. That didn't really happen. So why is that?

THOMPSON: Well, PCs are declining, they're just not declining quite as rapidly. It turns out it's actually a lot harder to shift your life

entirely away from a PC to an iPad. This gets to, you know, the big things that's going on is that iPads are great for certain things. They're great

for things like reading, they're great for videogames, but they're great for a relatively narrow number of things that we do. They're not like

phones that we use for a million different ways.

So iPads are kind of a little bit more like a TV. You buy one, but then you don't buy a second and you don't buy a third one, you don't buy

them every year.

So what's happened is everybody bought iPhones -- I'm sorry, iPads, or a lot of people bought iPads. They didn't upgrade. They use them

sporadically. They use them on planes. They use them for certain things. But they're not an utterly essential part of their lives. And so some

people have kept their PCs and then, you know, had both a PC and an iPad.

So, the trends are a little different than we expected. We expected iPads to sort of go up forever, PCs to decline indefinitely. And that's

not what's happening.

LU STOUT: Now let's talk about tablet innovation and iPad excitement. Because let's be honest, when a new iPad comes out, it's not something like

scores of people stand in line for. I mean, why is that?

THOMPSON: Well, I think there's a little bit of a lust gap. And so what happens is if you get a new iPad, people don't really know that,

right. We don't carry them with us. We don't put them on the table when we go to a bar, right. But if you buy a new phone, you put it out in front

of everybody. You have the new iPhone 6? Oh my god, you're so cool. I need to get one of those.

You have the new iPad, first of all, it looks the same. It doesn't do quite as much and it's in your briefcase. So, there's not nearly as much

excitement.

So part of the lust gap is real. These iPads aren't improving at the same rate as the phones are improving. And then part of it is just

perception. You know, we don't see them all the time so we don't get as excited about them.

LU STOUT: I'm sorry to interject. I'm just imagining that one person trying to narrow the lust gap proudly putting that new iPad on the bar

counter, right, just to show it off.

THOMPSON: Right. You'd be such a dork if you did that, right. But you put your phone suddenly on the table everybody wants to talk about it

and look at it. Oh my god, it's so big. That's an amazing device. So, it's quite a different experience.

LU STOUT: And also in terms of just I mean the sheer geeky factor in terms of tech specs inside the tablet computer. I mean, are there fewer

places to innovate with the iPad? You know, it's got a big screen, that's it. Is there any other room for improvement?

THOMPSON: Well, I mean, the improvement that we see on iPads consistently are sort of faster processors, new apps, better screens,

lighter, fits in your briefcase. But these are the kind of things that, you know, phones are improving. Like phones, suddenly, oh my god, a phone

can replace my wallet. Oh, they can pay with everything with my phone, right.

Because phones are smaller, they're a little more flexible, because we bring them with us all the time there's a whole set of other -- there's a

whole other categories of things that we use them for, so there are many, many other avenues for innovation.

So I think that also has a lot to do with a decline in growth in tablets overall.

LU STOUT: And a final question for you, if I may, is the iPad and tablets in general turning into the new television set? You know,

something that we buy and upgrade only once in a very long time?

THOMPSON: I think it's turning into it in two ways. Number one, yes, it is absolutely like that. It's something we buy. We don't upgrade it

that often.

And, two, it's really there not for action, it's there to deliver content, right. It's the medium on which you watch television on bed, or

in which you read your newspapers or magazines. It's not something that you really do things with. So it's kind of -- it's more of an intermediary

than the actual active thing, which is why there's a little less room for innovation.

So, it's quite a change from what we expected, you know, four years ago we thought these things would absolutely transform the world. They're

out here. They're big. A lot of people have them. They're great. But they're not quite what everybody thought.

LU STOUT: Yeah, it's turned into maturing technology, which is effectively an appliance.

Nick Thompson, New Yorker.com. Thank you so much for joining us. Always enjoy talking with you. Take care.

THOMPSON: Thank you, Kristie.

LU STOUT: Now, before we go, we want to pay tribute to Ben Bradlee. He's a man known for his unyielding pursuit of truth and for helping

inspire a generation of journalists.

Now Bradlee was the executive editor of the Washington Post between 1968 and 1991. And during that time, he oversaw the paper's groundbreaking

coverage of the Watergate scandal, the downfall of the former U.S. President Richard Nixon.

Now Bradlee died Tuesday in Washington after a long battle with Alzheimer's Disease. He was 93.

And that is News Stream. And World Sport is next.

END