Apple iPad: Bragging rights

Posted in This Just In... on February 1st, 2010 by gkrakow

In case you are on the fence about whether the new Apple iPad is right for you (see below) here are some encouragnign words from some people who know.

(Not that they’re biased, or anything like that…)

Apple’s iPad: A good idea?

Posted in News on February 1st, 2010 by gkrakow

iPad

I’ve waited until the dust settled a bit before speaking my mind. In the interim, I’ve heard from a large number of people who think Apple’s new iPad is a bad idea.

Aside from the horrible name (yes, also I thought of all the rude possibilities within seconds of the announcement) many readers told me they think the iPad is a big misstep.

Some call it an overgrown iPod Touch, others, not as kind call it the Newton 2. One friend who is heavily invested in Apple computers, phones, iPods and assorted Wi-fi devices and other Apple gear wrote me, almost immediately, to complain:

“Too big to go in a pocket… hard to hold… it’s not an iPhone or a laptop… PLUS it will add more data, including movies and games streaming on the AT&T’s wireless data network. Good idea!!!!!”

OK. I have to agree that I too have some doubts about the iPad as well.

First and foremost, the price. I think that Apple has overpriced these new devices way out of the reach of the masses. Starting at $500 for the Wi-fi only, 16GB model (and no AT&T 3G network connectivity) to a whopping $830 for Wi-fi, AT&T 3G and 64GB of storage. Yes, that’s cheaper than one of Apple’s laptops – but it’s not really a laptop.

Unfortunately, it really does look like it’s a big iPod Touch and that perception problem is going to be a tough one for Apple. Even though Mr. Jobs didn’t dwell much on the subject, during his announcement, the iPad runs on the iPhone operating system. Maybe a new and updated version but a smartphone OS nonetheless.

That means the iPad, while reaping the benefits of many of the iPhone/iPod Touch’s clever features and Apple’s App Store it will also be hampered by the fact that multi-tasking will not be a part of its tricks. That means it really is an oversized PDA.

Probably the most interesting part of the iPad is the processor. Also not discussed much at the unveiling, the iPad runs on a new, Apple 1GHz A4 processor which they call a “custom-designed, high-performance, low-power system-on-a-chip”.

It’s the first processor to be added to a product since Apple bought the chip manufacturing company called P.A. Semi in 2008. The chips are updated StrongARM RISC chips. ARM and StrongARM chips were and are used in all versions of the iPhone and also in Apple Newton PDAs.

It seems some of the impetus for the iPad may have been in response to the proliferation of netbook computers and Amazon’s Kindle electronic book reader. Mr. Jobs told the Apple faithful at the iPad introduction that these devices can’t come close to measuring-up to his new iPad. That’s somewhat true.

Netbooks have usable, hardware keyboards and can multitask – and Kindles have a year-plus head start on the iPad and 3G connectivity is free for the life of the device. Plus, they are both a lot less expensive. Yes you can find netbooks and Kindle models selling for nearly $500 – but you can also buy those devices for almost half the iPad’s price.

If Apple wants to be competitive they’re going to have to drop the price of the iPad before they begin shipping in March. Apple overpriced the original iPhone as well – the 8GB phone started life at $599. Apple dropped that price quickly (to $399). Beginning with the second generation models iPhones were priced correctly ($199-$299). That’s when sales went through the roof.

Even though pundits thought the iPad would sell for $1,000 and up Apple seems to have taken the recession into consideration and set somewhat lower prices. They need to be even lower.

Apple also has to figure out a way to make tablet computing cool. Up until now, the idea of buying and using tablets has consistently been rejected by consumers.

On the other hand, except for a number of product missteps in the past (in addition to the Newton do you remember the Cube?) Apple has an amazing track record of creating and selling innovation to the masses. Mr. Jobs might just be right and his iPad might turn out to be a big hit. But, I believe he’s going to have to drop the price – a lot – to start to make that happen.