Steve Jobs took the stage yesterday for what might be hislast earth-shattering product announcement- the long awaited, much discussediPad, a product that Apple has been working on for over seven years.
Tablet computing is not new to Apple. The Cupertino,CA company released its Newton tablet/pda combo in 1993 to anunderwhelming response from the general public and the geek nation alike. The iPad is certainly a giant step forward intablet computing. It looks like a muchlarger iPhone, but retains the sleek, shiny allure of its smaller, arguablymore useful cousin.
Apple's stock dipped 4% yesterday after the iPadannouncement, but ended 1% higher than it opened. Analysts tell us that the reason for the risewas the announcement of the $499 opening price point for the device. The stockopened lower today, but it remains to be seen what impact the iPad will have onApple's bottom line. The Newton, the cube, and theearly iBooks aside, Steve Jobs has a stunning track record of successfullycreating and marketing products that change the course of daily life.
Despite the beauty of the iPad, it is difficult tounderstand exactly how this particular device will enrich the lives ofusers. The entry-level devices will notinclude 3G connectivity and will require a wifi hotspot. The models that will include 3G connectivitycarry a daunting $829 price point- with no break on the data plans that willprovide the connectivity. It is rumoredthat AT&T will offer a $30 data plan for the iPad, but will not offer abreak for those of us that already pay for an iPhone data plan. Currently, I personally pay $30 for my iPhonedata plan, $60 for a Verizon broadband card for my laptop, and $40 for mybroadband connection at home. That'sover $1,500/year for internet connectivity. I am simply not willing to add another line item to that expensecategory- but the iPad is of greatly diminished value to me without an“anywhere, anytime” internet connection.
Apple is leaning heavily on the video capabilities of theiPad. While the screen is beautiful, andthe built-in speaker is rumored to be quite robust, one can purchase a 42-inchHD TV for about the same price as the 3G-enabled tablet. That same person can watch TV and movies ontheir laptop and on their iPhone. Salesof movies and TV shows in the iTunes store have been unimpressive, and Applewill likely continue to feel increasing pressure from websites like Hulu andYouTube, which offer content for free or via an advertising-supported platform.
Jobs also touted e-books as one of the functions that will makethe iPad a must-have. While the screenis gorgeous and larger than the smaller Kindle (amazon.com's e-reader), it isbacklit. Many e-reader users want ascreen that is not backlit and is more like reading a paper book, especiallyafter spending most of the day in front of a computer screen. As for newspapers and other periodicals,there is already a buzz that the iPad will save the daily newspaper. amazon has already introduced a largerKindle, more suitable for reading a newspaper or magazine in a digitalformat. The New York Times devotednearly a full page of today's newspaper to the iPad announcement- but failed tomention that the old grey lady was the newspaper that Steve Jobs used to toutthis function of the iPad- and that the NYT worked with Apple for months tocreate a digital version formatted exclusively for the iPad.
Despite the larger screen, which allows for beautiful color,many users will likely still prefer to read newspapers on their dedicatede-readers, smartphones or laptops, or will continue to read the print editions. In addition to the Kindle itself, thereare already Kindle apps for iPhone and Blackberry, and one for the PC and Macpersonal computer platforms, the combination of which gives readers the abilityto view their e-books anywhere, on almost all of the devices they already own.
The New York Times published a particularly entertainingarticle about e-books on the iPad today. The article's title is titled “Books on iPad Offer Publishers a PricingEdge”. Deep in the story, this lineappears: “In the short term, authors and publishers will most likely earn lessfrom book sales on the iPad [as opposed to providing content for the Kindle].” Much of the success of amazon's e-bookprogram has been due to the bookseller's lower price point for e-books- almostnever higher than $9.99. Apple hasannounced e-book prices ranging from $12.99 to $14.99, closer to the price of apaperback.
So what is the bottom line on the iPad? It certainly remains to be seen. Apple's combination of form and function is apowerful motivator for consumers, and the iPad is certainly beautiful. However, until there is more evidence thatthe iPad will become a preferred device for video content, gaming, e-books, andweb-surfing, it seems like one more device that will sit on a shelf, forevercharging, while we continue to use our iPhones, laptops, netbooks, ande-readers. Much of the allure of theiPhone is that it is our e-book reader, our GPS, our web browser, our onlinebanking tool, our e-mail client- and, of course, our phone- all in apocket-sized package.
Apple iPad pros:
- Beautiful large color screen with cutting-edge display technology.
- Smooth video playback.
- Full internet browser.
- Long battery life (up to 10 hours, according to Apple).
- Elegant design.
Apple iPad cons:
- No subsidies for 3G internet connectivity.
- High price point for 3G-capable models.
- No Flash capability (severely limiting the ability to stream video and audio from the internet).
- Much larger “footprint” than an iPhone.
- Not a phone (but it does include a built-in microphone).
- No camera.
- No expansion ports.
