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Why the iPad is not a Fail!

January 29th, 2010

I, like many others, watched as Apple unveiled their newest product: The iPad. Now as a response to that I have heard negative comments all across the board as to why the product failed to deliver. I strongly disagree . And here’s why:

 

  1. Apple has developed a new ecosystem to capitalize on the technology it has developed.
  2. The most impressive feature is not related to the device it self, but to its partner service. AT&T was chosen once again to partner with Apple in the US to deliver the 3g service at a historical low. $30 / month without a contract. Cancel at anytime.
  3. Target Market: To the disappointment of all my geeky and techy friends. You are not that target. Yes you are the ones who cared to  watch yesterday, but its not your all in one dream device. Its simple my Next device.
  4. Business Model

Let me delve into that last one.

I am sure that for your top 15 reasons why you hate the iPad there was a solid business decision to do so.

The top two of those reasons are:

1.Cost Engineering the $499 base price

Think about the economy, we are recovering from the worst economic downturn since the Great Depression. A $1000 starting price would likely have flopped.

Steve was very proud in the presentation of the fact that the iPad was starting at 499. Yes i know those of you who want the high end will likely add all the trimming and pay over $1000, but budgets are tight.

 

2. AT&Ts $30/month w/ no contract

I said this already and I will say it again. This is the most impressive feature!

Lets compare to the cost of Verizon data:

They sell  an HP Mini netbook for $199 with a 2-year contract. The data plan is $39 for 250Mb/month, $59 for 5Gb

You can clearly see that though the initial price for the device is lower, but the  monthly cost is significantly more.

Finally we need to remember that this is a 1st generation product. We will see revisions, modification and additional functionality as future generations come out. Just be patient.

 

Both my 5 year old and I can’t wait to get our hands on one. Yes we watched the demo as a family. Yes, I know how dorky that is. I also know that my kids likely won’t even remember the pre iPad days. Now that IS crazy.

Author: Aaron J Bates

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3 Responses to “Why the iPad is not a Fail!”

  1. Wes says:

    I couldn’t agree more.

    Here’s another thought, for 95% of Americans the typical $800-1000 computer is way overpowered for what it is used for. If you’re a graphic designer, computer programmer, video editor, etc… that’s one thing, but most Americans are wasting their money on power they will never actually use.

    I’m sure if you went around and asked all of the people in your local social network the top 5 things they do on a computer a day that each thing could be accomplish via the iPad or something similar.

    Facebook, MySpace, Twitter, Web Browsing, Email, Word Processing, Spreadsheets, etc… can all be accomplished with ease.

    Apple has done it, they have found a way to develop a device that fits perfectly into the niche category between computer workstation and smartphone.

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