I think the strategy behind Apple’s iPad launch is genius, and they are poised to dominate the tablet industry just like they dominate the smart phone industry. Many think that the iPad fell short of expectations. I don’t disagree with that, but I think that there is a method to Jobs’ madness. Here’s why:
It really didn’t matter how silly the iPad seems (just a large iPhone), people were going to buy it anyway. Apple was smart to launch early to take advantage of this brand loyalty. What happens if nobody likes the product? They can buy the second version. Apple could launch a 52″ iPad TV and people would buy it. It would be silly for Apple to stretch itself thin and try and meet an outrageously low price point and pack their product full of technology if people will buy it anyway.
Fewer expensive components means that Apple can come in at a very competitive price point. With the exponentially decreasing price of technology, Apple will hopefully be able to meet the same price point with the second iPad, and also include a camera and other important equipment. And since the first version is pretty cheap, Apple will probably be able to raise the price on this second version, just like the progression of the iPhone pricing.
By the time other companies are coming out with their tablets, Apple will be launching the second iteration of it’s iPad. Apple will have had a chance to work out the bugs, add newer technology and benefits, and probably get more bang for the buck than the first time around.
So that’s what I think. I know I’m beating a dead horse, but we couldn’t stop talking about it in the office and we wanted to see what our readers thought. Let us know!
-Andrew
