I wasn’t planning on writing another post this week, but after watching and reading all this stuff about today’s iPad announcement, I couldn’t help but have all these thoughts about the business implications of Steve Jobs’ latest creation. With most of the dust settled now, here are some of my reactions and questions:
The iPad looks really neat and I’m sure it will work really well, but I don’t think it will be a revolutionary product that will define both the PC industry and Steve Jobs’ career. Most people will not be giving up their laptop for an iPad. For one, it doesn’t look like you can’t do any serious work on it. As good as the on-screen keyboard may be, I can’t see myself writing an essay or making spreadsheets on it. It’s definitely more of a portable/media machine, but I’m not sure it has a competitive advantage there either. If I want to tweet or Facebook on the go, a smartphone will do just fine. It doesn’t do flash. I’m not sure I would watch a full length movie on it either because with a screen of less than 10″, it’s smaller than most netbooks.
That’s not to say the iPad’s completely irrelevant. It’s great for simple, portable, visuals driven tasks. There are rumors that the iPad could appear on 24 and I think it makes a lot of sense. I can easily see the iPad being used by law enforcement and firefighters to view maps of a city and respond accordingly to 911 calls. It could also be a great tool for salesmen and real estate agents to show clients pictures and demos.
If anything, the iPad will force Amazon to step up its game with the Kindle. The most promising aspect of the iPad is iBooks because it definitely looks nicer than the Kindle and it more functionality without being that much more expensive. In fact, $499 is a very reasonable price for Apple. The key here will be whether or not Apple can get the content to compete with Amazon’s library. I don’t see how this will help newspapers though. If Apple and publishers think they can force consumers to pay for news articles, then we’ll see a quick death of both print media and the iPad.
Taking a step back and looking at the industry as a whole, I think we will quickly see all sorts of imitators and competitors pop up within the next year. They will try to undercut Apple on price and try to match its features with varying degrees of success. Most of them will fail but some may become viable alternatives (think Blackberry or Palm in smartphones). One potential competitor I’m going to keep an eye out for is Google. I think it’s only a matter of time before they come out with a competitor to the iPad. From a business standpoint it makes a lot of sense because a device like this is meant for cloud computing. Google already has the software with Android and Chrome OS. It even has the hardware experience with the Nexus One now, although a third party is more likely. If there is an announcement down the line, don’t say I didn’t tell you so.
Of course, my opinion may change completely when I finally see and touch an iPad in person. In fact, I can’t wait to go try it out when it arrives the Apple Store. I’m also jealous of all the TechTrekers who will obviously have plenty of great questions to ask at Apple this year.