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Written by: Bruno VANRYB on Mar 23 2010, 8:46am

iPad, next hit or a potential miss for Apple?

Since Steve Jobs has introduced the iPad, there’s a huge buzz going on about a product that nearly no one has seen in reality!

Being an iPhone power user, I feel compelled - like every people on earth - to give my 2 cents on this new product which happens to be a kind of giant iPhone, with more or less the same advantages and downsides of his little brother…

Let’s be direct, for me the iPad is 20% innovation and 80% design and marketing: there’s no revolution in introducing yet another tablet, and I can name few unsuccessful devices trying to break into this very market since few years.

But, and this is a big “But”:

This was also true for the iPod at the beginning! While I was already using portable MP3 players with an embedded hard disk for ages, Apple introduced the incredibly beautiful, small and easy to use iPod V1 (at the expense of a poor reliability and a very questionable sound quality).

What happened afterwards? Release after release the iPod was getting better and better, smaller and smaller, reaching the point where it was nearly impossible to buy something else despite the very high price, the terrible headphones, the non replaceable battery, the still questionable sound quality, and - cherry on the cake - the iTunes bottleneck which gives Apple a total control on your portable life…

Same thing happened with the iPhone V1! If you remember the Buzz around the launch, it was pretty negative and nearly impossible for a professional user to envision the iPhone as an alternative Smartphone solution. Few years later, this highly criticized Apple device associated with the appstore concept has totally changed the Mobile phone industry!

Frankly, you can question a lot of things on a 3GS phone, but it is definitely usable, and this unique mix of fun tools and great apps makes it a “pretty cool stuff” despite the numerous downsides.

In essence, the Apple revolution has never been into creating something totally new from scratch – and I can give other examples of this - but more into mixing various existing technology and create a unique customer experience through perfect implementation, unique design, killer marketing and - even more important - continuous product evolution.

In this regard, whatever you think of this new device, the iPad is totally in sync with what Apple has successfully achieved in the past decade!

On top of that, there are additional good reasons for being cautious before adding the iPad to the list of Apple main Failures along with the incredible Lisa computer in 83, the easily forgotten Newton organizer in 93, and the doomed Pippin Game console in 95:

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  • Let’s not forget than the iPad main asset is to provide iPhone addicted users an in-house version of their favorite drug! Synchronized with your iPhone content, it could be seen as a comfortable alternative with a larger screen for using at home iPhone apps, with the added bonus of comfortably reading books.
  • The price remains reasonably low for an Apple device in order for the massive iPhone/iPod touch fan base - used to pay a lot for Steve’s cool stuff - to adopt it easily enough.
  • iPad is a product oriented towards domestic use, positioned in the consumer electronics segment, which is clearly a huge market compared to any other industry. Taking small market shares in this main area is enough to reach success!

So, assuming that the iPad will evolve regularly to reach the next level of usability and features - and despite the fact that I have no intention whatsoever to buy one ;-) – it’s not totally unreasonable to think it will be successful!

All this said and whatever the outcome, I must confess that there are some aspects in Apple roaring growth that really worries me as an independent software developer:

  • The iTunes/Appstore model seems “cool” but it gives very little control to the software developers and music composers with a) no possibility to market their products directly to the iPhone users, b) no real information on the global appstore traffic and conversion rate, c) no competitive information, and of course, d) no control on the profit margin.
  • If things continue on this trend, Apple potentially has total control on the digital distribution and purchase of both music, books and software!

Are we contemplating the mutation of what’s still perceived as a “cool” brand into a monolithic giant, comparable to what Microsoft was in the 2000’s years or Google tends to become in the 2010’s?

Another question to answer, perhaps much more important than the former one about iPad’s future…

 

Citizens Comments

Mohamed Hamdouni says:

@ Bruno: I think last question should have its own discussion thread, you are right when you said that these 3 high-tech industry players are muting into uncontrollable giants and that they hide the sun to most of other players (including big one such Vodafone, Nokia etc...)

This could be controversial or (like it was the case with iPhone punch to mobile phone industry) a way to relaunch innovation machine

From end-user perception, Apple and Google are still "cool" brands (each one at its manner) but there is also another perception that could emerge from how peoples could interpret their strategy, for me and until I see visible changes, what drive the company is the most important... (see my thought below)

- User experience drive Apple strategy => Cool

- Openness and Web drive Google strategy ==> Cool

- Money drive Microsoft strategy ==> Bad

Concerning the iPad: I vote same flop as Apple TV

When all peoples will have a Nas server, a setup box, a TV connected to internet, a Wi-Fi mobile phone, a wireless printer, a laptop then they will be ready to get an iPad or such device (that is only a complementary device)

Just to remember iPhone discussions, the challenge for Apple was to make a better smartphone than BlackBerry, Nokia, Motorola, Samsung, Palm, etc..., it was an already existing market, with existing consumers (When the iPhone was launched the Smartphone market was about 30% of entire mobile phone market => mean 300 millions units sold per year), was exactly the same case for Nintendo and its Wii (Millions of gaming consoles were sold before the Wii came into the game...)

Today, with the iPad, the challenge for Apple is a bit different, they try to create a new product category (as they define it themselves as a device between an iPhone and a Mac book air without being a Netbook "killer" or a e-book reader), so yes, they will be the apple fans as early adopters (182000 pre-orders for iPad is not a small performance) but after that, what?

iPad = Apple TV or iPad=iPhone? only end-users will tell us and also the 80% marketing (as I personally put the design on the 20% of Apple innovation :) )

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Mar 24 2010, 8:26am | Report

Bruno VANRYB says:

@Mohamed

Agreed, I will open soon a discussion thread on the last topic...

 

 

 

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Mar 24 2010, 9:09am | Report

Olivier Thirion says:

I don't share your point Mohamed.

I think iPad will open a new market: users that currently do not use computer. it's perhaps a surprise to you but this population exists :-)

One year ago, my father (75 years old), who never touch a computer, asked me to purchase him a computer. To save me time on support I purchase him a MacBook. But if I have to make the same thing today, I would purchase him an iPad.

Why?

Easy to use (don't explain what to do with the mouse...)

You can not break it (as Apple "prevent" you to break it controlling apps) -> so no support for me ;-)

Do basic things: email, web browser, photo / music management

Extendable thanks to the AppStore

 

So perfect for my father. The only thing that can be a problem: printing. For me I don't have a good idea how we will print from the iPad and this can be a problem. I can imagine that with a Wifi printer it would certainly have a solution.

 

On top of this the user interface, with touch screen is easy to understand for any human begings. The proof: my 5 yeas old kid know how to play games and navigate on my Ipod Touch, so for sue he will be able to play with an iPad.

It realy can become the family computer, really mobile, that everybody can bring in any room of the house and enjoy. Always connected, easy to use, multimedia. If on top of this Apple deliver great content over the network it could be a real multimedia platform.

It will be a pure pleasure for causal games, and I think the big screen will allow game designer to make tremendous things. The only question mark is about the graphical power of the A4 processor. We will have to wait to evaluate this.

 

So I think Apple will make a great success with the iPad. They convinced millions of people to use iPhones. These users picked this phone because it was making the mobile phone easy to use and powerful. the iPad will do the same with the laptop market making it easy to use and powerful. They will just wider the audience of "computer" users.

I have no doubt about this.

But in the same time I am an Apple TV user, so a kind of looser ;-)

 

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Mar 24 2010, 3:51pm | Report

Pierre VEBER says:

When seeing other devices coming, I really don't get why people should buy an iPad. The comparison table is self-explanatory:

http://eu.techcrunch.com/2010/03/19/apple-ipad-how-about-a-little-german-innovation-instead/

May be the iPad 3GS will fix this :)

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Mar 25 2010, 2:43am | Report

Pierre VEBER says:

@Olivier: I think the example of your father is a good demonstration of Apple marketing and Apple's fan common beliefs. You think that because he has a mac you have less support and it's easier for him, but that's not true, at least from my own experience. Learning how to use a computer requires the same effort to newbies wether they're on Mac OS, Windows XP or even Ubuntu. My father (78) has Windows XP, he's really not comfortable with any kind of technology, but he's okay with the PC. I've heard a lot of similar experiences.

But ask somebody used to system to switch to another, and that will be another story.

 

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Mar 25 2010, 3:01am | Report

Mohamed Hamdouni says:

I do agree with Pierre that Apple devices owner (or differently named: Apple addicts) think that Apple will make all peoples who do not use to work/play on a computer a bit less reluctant to technology, you may be learn faster how to use a Mac or an iPhone but you still have to learn it (it is a legend that someone who never used a computer could use a Mac without any problem).

The other part of the market (Those who already have a computer) are mainly PC users and they are using Windows at work, on cyber-cafés, at school, at the hotel etc... so do you think they will need to re-learn how to use a Mac because of daddy? My own nephew (6.5 year) now how to use a PC, surf on the internet and even how to install Firefox and Flash on a machine and to conclude I think that the current 75% to 80% PC owners are not wrong...

One point I do agree with you, is that iPad will keep the user always on track when using the device (it will not allow end-user to break/crash it by doing something he should not) and this is probably needed for some users (Windows should have a kind of standard vs. advanced users profile selection at start) but in my case it will be more a frustration than something else ;)

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Mar 25 2010, 4:03am | Report

Olivier Thirion says:

We will chat about this story in one year timeframe and we will see...

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Mar 25 2010, 5:39am | Report

Olivier Thirion says:

@ Pierre: about the comparison chart, if you take the iPhone, it's not by far the best telephone in term of hardware and this did not prevent it to be a tremendous success. It's the package between hardware / software/ user Experience / marketing that makes the difference.

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Mar 25 2010, 5:42am | Report

Pierre VEBER says:

@Olivier: I agree that the hardware does not make a product better, but to me the following makes a *huge* difference in terms of user experience. Let me expose the user stories behind the basic hardware facts:

Webcam 1,3 Megapixel
As a user, I can do live chat with my friends, and visio conferences with my work mates.

Ports 2 USB ports, card reader, audio out, SIM card slot, multi pin connector
As a user, I can plug any external USB device, such as an external drive, mp3 player, etc...

There are also two important differences in software:

Flash / Adobe AIR
As a user, I can browse Youtube, Facebook, etc... I can use my favorite apps, like SendPhotos.

eBook format: All open standards
Means that as a user, I can read eBooks that comes from any stores - and also free eBooks.

 

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Mar 25 2010, 5:52am | Report

Pierre VEBER says:

Hopefully, some people are shaking their brain and eventually found a use for the iPad:

http://www.thinkgeek.com/stuff/41/iCade.shtml

 

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Apr 1 2010, 4:10am | Report

Mark Manes says:

A couple of points i would like to make:

The Lisa while a disaster was the brain child of Steve Jobs and I would claim it is really the only Apple product that failed under his tenure. He didn't have anything to do with the Newton. He didn't have anything to do with the Pippin (OMG! what a disaster). The Apple III he tried to kill and he scoffed at the Apple IIgs.

I would say after reading multiple books about Steve Jobs that the early version of Steve Jobs (before he was ousted from Apple) was a young guy who was trying to repeat his success with the Apple II. He was overbearing, foolish and arrogant.

I think Steve Jobs 2.0; the one that took the helm when the first iPod was released kept all of the successful ingredients of 1.0 Steve (the overbearing and arrogant) and mixed it in with brilliance, vision and way of inspiring people to give 110%.

Apple succeeds today because they have built a tremendous brand and user base around the iPod. It is all about the iPod effect and that has moved to the iPhone and will move to the iPad.

:)

 

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Apr 7 2010, 1:51am | Report

Janette Palmer says:

Its a miss from me, i prefer the idea of tablet Macs/PC so that you can still do all your usual work on them, the ipad is an inbetweener.

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Apr 9 2010, 9:17am | Report

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Bruno VANRYB

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Avanquest Software CEO and co-founder

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