NEW YORK (TheStreet) -- Crediting a vague cadre of "industry sources," the DigiTimes screamed in a headline that Google (GOOG) was going to come forth with a dirt-cheap tablet device, roiling the entire tablet market: "Google 7-inch tablet PCs to bring price-cut pressure on other vendors."
Hear that, Apple (AAPL)? Shaking in your shoes yet?
Nevermind the speculative nature of the article. Many in the media -- including The New York Post -- took the anonymously sourced rumor on absolute faith. Worse, they were off to the extrapolative races: "Google's $150 handheld device could trigger tablet war," the Post blared in its headline.And when it comes to the media, of course, why stop at one rumor? Rumor begets rumor. Not only is Google coming out with a small tablet, said The Daily Mail, but "Apple is rumored to be working on an 'iPad Mini' with a similar form factor, according to analyst reports, which could appear in the third quarter this year." Who knows -- all of this might even be true. But it's always nice when rumor and speculation comes with a warning label. That's what Android and Me did with a headline that, appropriately, waved a warning flag: "Rumor: Nexus tablet is a 'done deal,' to retail for as low as $149." Got that? It's still a rumor. Beware, by the way, of mainstream media outlets trafficking in rumors with a clever bit of journalistic tush covering. Take this Barron's headline: "Google Teams with Asus for Cheapie Tablet, Says DigiTimes." That "says DigiTimes," is a verbal distancing mechanism. Once they ascribe the rumor to an outside force, -- well, then all bets are off. They have no responsibility, but can draw conclusions until their heart is content (and traders detriment). If they're wrong, they never said it in the first place. DigitTimes did. This rumor about a tiny, cheap Google tablet might be true. But until you know for certain, use the good sense the media does not.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV