Monday, February 1, 2010

Apple iPad - Wait for v2.0

Apple iPad is probably one of the few Apple products which have a confused positioning.

It is not a mobile phone- it is too big for that purpose.  Those expecting it to be an extension of iPhone did find that similarity. However, they are underwhelmed as iPad does not seem to have made effective use of higher computing power and screen space.  Lack of Flash support and its central position in Apple's marketing blitz is intriguing. It is hard to understand why Steve Jobs chose to demo "absence of Flash" rather than positives of iPad.

iPad is not as functional as a laptop.  Absence of keyboard makes it a less efficient tool for professionals who travel but still need a fully functional computing system.

iPad also does not serve the purpose of stress free book reading, a market which Kindle dominates. Even though a few reviewers give iPad's high screen resolution a thumbs up vs. Kindle. Kindle is still under threat from v2.0 of iPad. As Nick Marshall points out, "Kindle is a one-dimensional device with limited format support and .... competes in a micro niche.  The distinct advantage the Amazon Kindle has over the Apple iPad is the data subscription fee."  That said, e-book reader is a much smaller market and unlikely to touch millions of iPhones and iMacs.  

Another usage scenario is head on competition with Tablet PCs or netbooks.  Tablet PCs is a niche market with most common usage in the healthcare industry.  Doctors are finally being forced to move towards e-prescription and tablet PCs are more user friendly and time efficient than PCs.  However, compared to Netbooks, iPad does not make the cut. And as Nick Marshall says "Price-wise the $499 entry level iPad is still over 60% more expensive than the Dell Inspiron Mini and lacks many key features: multitasking, hdmi video output (external monitor), optional external dvd drive and front-facing camera (web cam)."  That said, Apple has huge volumes when it comes to components like touchscreen, batteries and can use some of its iPhone component advantage. iPad v2.0 can spell the doom for net-books and tablet PCs.

iPad is probably a niche product and will remain so till next version of iPad makes significant adjustments to price and product positioning.  iPad v1.0 is probably not going too far, however,  I am going to wait for v2.0 before writing off this product.

4 comments:

  1. Hi Vivek, my view on this product is more positive. I see it as a device I think even my parents might feel comfortable with. It is a device »for the rest of us« and not a »fully functional computing system« — whatever this means. I more or less agree with Fraser Speirs (»Think of the millions of hours of human effort spent on preventing and recovering from the problems caused by completely open computer systems.«) and am looking forward to the availability of the iPad.

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  2. Michael

    Thanks for your comment. I am sure Apple will learn from the feedback, some reviewers are calling v1.0 as market test for next versions.
    I love the impact standards like USB2.0, mpeg have had on content and device interconnectivity. One of the features I insisted on my recent LCD TV purchase was its ability to playback videos from a USB2.0 device.

    Going back to a closed system, seems like getting locked in a zoo when I have the choice of roaming free in the wild. I get taken care of in a zoo, while I love the freedom of being in the wild - even when it means security risks.

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  3. Great analogy... :-)

    If you have to get things done, I guess many people would prefer to avoid security risks… and stay inside the zoo (= secure environment).

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  4. I think lack of a lot of things is exactly what has made Apple successful. As Steve Jobs said in his keynote, it has to a "few" things very well. Apple has become successful by following the philosophy of "less is more". I know that a lot of us are speculating here because none of us have used an iPad, but I am not ready to write off iPad v1.0 just yet. I was actually amazed by the UI innovations they have done.

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