iPad 2: The Android Challenge

79 Comments

Despite mixed reviews and a version of Android (s goog) “not optimized” for tablets, Samsung sold 600,000 Galaxy Tabs in its first month, and recently claimed to have sold a million. If Steve Jobs isn’t concerned by those numbers, he should be. It was a just over a year ago the Motorola Droid (s mot) launched with Android on Verizon’s (s vz) network, and we all know how that turned out for iPhone (s aapl) market share.

Setting aside the expected iPad 2 improvements, a faster CPU, more memory and storage, cameras, Apple needs to look at what the competition is doing today and tomorrow. With a yearly release schedule, Apple needs to match the Android tablets of 2012 in 2011, but first needs to look at 2007.

Past Mistakes and Future Connectivity

The first step in preventing Android world domination of tablets is not to repeat mistakes made with the iPhone. In 2007, Apple launched the 8GB iPhone at $599, only to drop the price $200 two months later. In 2010, the iPad launched the 16GB Wi-Fi iPad for $499, and nine months later competitors like Samsung are struggling to match that price point with smaller tablets. Lesson learned, Apple.

Unfortunately, Apple is still learning the hard way about carrier exclusivity, since the iPhone is still exclusive in countries like the U.S., though that’s expected to change soon. Likewise, the iPad 3G only works out of the box with AT&T (s t), though this is mitigated by mobile wireless routers which allows the Wi-Fi version to theoretically use any network. An extra dongle, however, is a very un-Apple solution. In contrast, the Galaxy Tab is available on all four major U.S. carriers with built-in connectivity.

Apple needs to match that kind of accessibility and take it a step further, making 3G standard on every iPad sold. If this can’t be done without raising prices, the increase should be minimized, as market share matters more than margins with a new platform like tablets. Let Samsung try to compete with a $529 3G iPad that works with any wireless data provider.

Size Matters

At the last conference call, Steve Jobs attempted to dismiss tablets with 7-inch screens as being unable to “compete with iPads.” Nearly a million Galaxy Tab owners would seem to disagree. Jobs also asserted there were “clear limits” on how small and close elements could be on a display, and yet more than a hundred million iPod touch and iPhone owners seem to be doing just fine.

What Jobs should have said was, “a 7-inch iPad would put downward pressure on iPod touch and iPhone prices, and we don’t want that.” Nonetheless, Apple needs a 7-inch iPad to undercut an expected deluge of Android competitors, perhaps at $349 for an 8GB model, $399 for 16GB. If it becomes necessary to to sell the 8GB, 16GB, and 32GB iPod touch at $199, $249, and $299, then so be it. The Galaxy Tab has already proven 7-inch tablets sell, and the RIM PlayBook (s rimm) is next. A 7-inch iPad would provide a smaller, lighter iOS alternative, and one that should be more than price competitive with Google and RIM offerings.

Flash Compromises

If it seems difficult for Steve Jobs to put out a 7-inch tablet after dismissing them, that’s nothing compared to allowing Flash (s adbe) on iOS tablets. Steve Jobs has said Flash hurts battery life and performance, causes crashes and has security issues, but if Flash is so terrible, then why not make it incompatible with OS X?

It’s because Flash is expected on a “traditional” computer. On handhelds and tablets, Apple hopes to keep such expectations from ever developing. That seems unlikely. Flash is or will be everywhere, except iOS. Can you imagine people switching from PCs to Macs and finding out Flash doesn’t work and there’s nothing to be done about it? That’s what will increasingly be happening with handhelds and tablets as they become just another computer.

iPad Independence

The iPad needs a computer, a proprietary cable, and iTunes for syncing content and software updates. The Galaxy Tab at least can do OTA updates, though it still requires a cable with a proprietary 30-pin connector for some syncing. Presumably, webOS (s hpq) tablets from HP will be more advanced OTA devices in 2011, as will future Android tablets. This is where Apple really needs to go with the iPad, making it a computer unto itself. If a cable connection is needed, it should use the new MicroUSB standard instead of the proprietary dock connector.

If it sounds like I’m saying Apple needs to make a lot of concessions regarding its current ideas around tablet design, it doesn’t, so long as the company is happy with a minority (if highly profitable) share of the tablet market. Of course, a plurality, or even majority, could pay more in the long run, but that requires paying more attention to the competition today, and down the road.

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79 Comments

Carsten

yes the galaxy seems to have sold quite a few. but who has bought one? i seem people with ipads all the time. take the train from DC to NY and you will see a bunch of them. i have yet to see a galaxy in the wild.
what is interesting about the ipad users is also that it attracts a extremely diverse set of people … men and women, old and young … leisure and work. i have never seen so many CEOs adopt a new tech device. i have never seen so many of my co-workers (all biz consultants) adopt a new device. again, no one has jumped on the galaxy bandwagon.
my guess so far is that a lot of the galaxies have gone to geeks. that buy it for android. unlike with phones/smartphones tables won’t be heavily subsidized which means their prize level will stay higher than phones/smartphones. which will not turn them into real mass market devices (like phones). so if galaxy sales stay as high as they are right now across the next 18 months than i would start to worry if i was apple. but i would not be surprised to see sales dip quite a bit … once the early adopted/geek market is saturated.

PXLated

Yes, if every Apple hating geek bought one they’d hit at least a million. Once the geek ranks fill out we’ll have to see what happens ;-)

Charles Jade

Apparently, they’ve now hit a million, and Samsung has just increased projections from a million Tabs sold to 1.5 million by the end of the year.

The Tab is beginning to look a lot like the “Droid” of Android tablets, the breakthrough device. While no single Android tablet will ever outsell the iPad, combined Android tablets sales certainly could. Unless Apple moves much more aggressively, we will see what happened to the iPhone happen to the iPad.

Apple will lose the chance of dominate the market.

PXLated

Why does everyone refer to the Tab as a tablet when in fact it’s running a phone OS and has noting but upscaled phone apps – It’s a giant phone, not a tablet :-)

I love all the conjecture about android tablets creaming the market when in fact there isn’t even one on the market yet :-)

Gerda

5000 new Flash based websites hit the net everyday, and it’s increasing. If you’re an iCan’t user you are forced to browse a very crippled internet. Apple have already lost this battle, and now they have to fight for their reputation.

PXLated

Every Flash dev I know is busy converting sites to HTML5/CSS3. They are not creating any new Flash-based sites. These are long-time devs and they see the future. Flash is dead, it’s just not quite in the grave yet.
I’d be derelict if I recommended Flash to a client at this point.

Hamranhansenhansen

The best thing about iPad is it runs full-size PC apps, it is a mobile PC. A 10-inch, 1024×768 screen is a notebook PC screen. So you can run Keynote from the Mac, and you can run Web apps at the size and resolution that their designers intended, without zooming. You can read 8.5×11 PDF or Web pages without zooming. OS X is a PC operating system. Cocoa is a PC application environment, with C apps, like a PC. All of this means you can leave your PC behind most of the time and use iPad instead.

The second best thing about iPad is Netflix. Galaxy Tab does not even have Netflix. You have to be insane to buy a tablet without Netflix. With such limited storage, a library of thousands of streaming movies is essential.

David

Netflix has already announced they are working on an Android client, again everyone is talking about the present, when the author is looking at the future.

Hamranhansenhansen

> Flash

Flash is dead. Please stop talking about it.

I was a Flash developer for many years. In the past 2-3 years, there are no new Flash projects. My work has been exclusively porting existing Flash to HTML5/MPEG-4, which — regardless of anything Apple does — is the standardized, vendor neutral, multi-platform version of Flash. For many years, everyone involved with Flash knew it would be replaced one day by new HTML features. When Adobe bought Flash, they went into denial about it. HTML5 replaces all of these legacy technologies: WAP, WML, XHTML, SMIL, Adobe FlashPlayer plug-in, Apple QuickTime plug-in, Microsoft Silverlight plug-in. GET OVER IT.

> 7-inch screen

What Jobs said was that 7 inch screens are fine for running scaled-up phone apps, like on Galaxy Tab, but no good for running full-size Mac/PC apps, like on iPad. iPad replaces a notebook PC because iPad is a mobile PC. Galaxy Tab is a super sized mobile phone, but still a mobile phone. Galaxy Tab has no Netflix, no iTunes, no equivalent to Pages, Numbers, Keynote. Galaxy Tab does not even have a C API for desktop apps to be ported to, it runs baby phone apps written in Java only, with a limitation of 30 megabytes each. They are applets only.

> market share

Who cares about market share in phones? Nobody. Since there are so many phones given away for free, it is a false metric in phones. Instead, measure profitability, and developer support. Those are the 2 things you are typically going for when you go for market share in most markets.

Apple not only takes the majority of the profits in the handset market (literally over 50% of the profits go to Apple) but they also have over 50% of the apps. If you imagine the handset profits to be 2 pies, one pie goes totally to Apple, then they take a healthy piece of the second pie also. Then most of the rest of the second pie goes to Nokia, and then most of what is left after that goes to RIM, and then after that a tiny piece is split up by everyone else. That is why Android handset makers are teetering on the edge of exiting the industry. So when you act like Apple got spanked by Android in the past few years, you are just plain wrong.

Ed Hands

The Galaxy Tab’s numbers are impressive, but need to be taken in context: it is the holiday season and money is flowing a little more freely right now, but times are also tight and at a lower price-point, it is a good alternative to the iPad right now.
So after a month it has sold 600,000 units in a little under a month in the busiest shopping time of the year.
Comparatively, iPad sold 600,000-700,000 in the first week end (including pre-sales) in the first weekend with 300,000 sold in one day, (the Saturday after release.)
So while I agree with many items in the article, I take issue that Steve Jobs should be concerned with this level of sales; If you compare sales numbers, they don’t it even really compare.

WhiteyMcBrown

I have an iPad and I love it. That said, I’d love if Apple figured out some sort of an agreement with Adobe and allowed Flash in a way that wouldn’t have to leave Apple with egg on its face. The Flash issue doesn’t come up as often as I thought it was going to, but when it does, it sucks. I’d love to be able to go to every site on the web. There are still too many Flash sites that I can’t go to. I still believe that Apple is doing it to sell more apps and get their 30% cut. If you can play games for free on Facebook on the iPad, then why pay $5 for one.

I actually like the size of the iPad, but would like the for the weight to come down to about half. I have nothing against a 7″ tablet size though (I do alright on my iPhone after all). I just don’t think Apple will go for it. They have a pocketable solution and now they have a bedside table solution. Anything else goes into too many SKUs for Apple and they just won’t do it.

3G on every iPad sounds intriguing. I wouldn’t pay more, so that would need to stay the same or even come down. I’ve been Ok with my WiFi one so far.

I didn’t mind the missing front facing camera before, but now with the push for FaceTime it feels like it needs to be there. The rear camera feels silly on a device this large, but maybe someone will have a use for it.. so sure. I’m down for both.

Last things. I’d like more storage. I’d like it to feel faster (faster CPU, more RAM.. I don’t really care how they do it. It feels pretty fast, but faster is always better). Let’s get the cameras on there. Forget USB. If there’s a way to do stuff with Bluetooth or Wifi then let’s do that instead. I’m down for an SD Card slot, because my digicam can’t Wifi to my iPad. Let’s get the weight down and get a Retina Display on it. DONE. Great update!

Ed

One thing Apple could do is stop trying to control what apps we run. That’s one reason I won’t buy an iPhone and will never use the upcoming Mac App Store.

Hamranhansenhansen

You have a much, much greater selection of apps to choose from on iPhone or iPad than on any other mobile platform. iPhone has over 3 times the apps of any other phone. iPad has the only full-size mobile PC apps, and it has almost 50,000 of them, and it runs almost all the iPhone apps as well. And in addition to that, you can run any of many thousands of HTML5 apps because iOS has the best HTML5 platform available.

So you are misinformed.

Tonrkey

what i find MOST interesting about all of this is that now Apple enthusiasts have moved on to profit margins instead of marketshare, which is a sure sign they are starting to accept Apple is going too lose the mobile market just as they lost the desktop market.

while profit margins are great, there is 1 enormous flaw in this logic. Google is an ad-based company, they dont care about hardware based profit margins. for Google marketshare means EVERYTHING, thats how they sell ads. Apple may very well win margins over its hardware competitors, they will ultimately lose the marketshare/mindshare war to Android.

Apples greatest flaw is Steve himself, he is a “shortterm visionary”, the history books will reflect that.

PXLated

“Google is an ad-based company”
Yes, and they’re screwed when manufacturers put Bing on the device instead. How much is Microsoft willing to pay to ace out Google in mobile? – Yet to be determined.

Gazoobee

What a ridiculously biased fantasy the author weaves here. I couldn’t even finish it it was so ludicrous.

Apple needs to “match” the Android tablets of 2011? The whole article is based on the erroneous suggestion that Android is either racing past Apple or already has (in tablets no less!). And the still “need” Flash to compete? Are you Serious?

Android is behind Apple not the other way around. This thing reads like Android fan-fic.

Anon

They do that a lot here at gigaom. A combination of hit bait, a desire to breed controversy and an attempt to curry favor with certain companies, like Google, to get better access.

It’s dishonest, and unprofessional, but bloggers apparently don’t have the same standards of behavior as real journalists are expected to.

Charles Jade

If you’re going to assert someone is lying, I’d suggest building up the intestinal fortitude to do so without anonymity.

Not holding breath.

Charles Jade

You could have made the exact same comment last year using the iPhone and Android smartphones. How’d that work out for Apple?

Thomas whittle

Correct me if I am wrong but android only have a bigger market share in the us, in most other countries iPhones still have a larger Market share. This is because of exclusivity, wait until verizon have their hands on the iPhone.

PXLated

No the same – With phones (in all cases) you have carrier subsidies and of course those 2 for 1 specials subsidized by carriers/manufacturers. That’s not the case in tablets/pads except for those with 3G connectivity. So, totally different ballgame.

gpo

My wife and I both have iphone 3Gs. We got an IPad back in Aug. Here is my thought process. In the iphone I have my music player, phone, camera, video recorder, mobile gaming device, and I can email and surf anywhere. That packs a lot of punch into one device. The devices that the iphone replaced that were purchased many years ago are just collecting dust. Plus the iphone fits into my pocket.

A 7 inch tab may do all of those things with a bigger screen compared to an iphone, but the key is it won’t fit in my pocket. I am not going to carry a manpurse.

So the Galaxy tab may do everything, but it is too big. The IPad we have works great for surfing at home and playing games. I have not missed flash really. And I don’t miss a USB port. I don’t like printing things out, so I did not even miss that.

Here is the way I look at it. I can get two iphones for $200 a piece. An IPad for $500. A cheap laptop for $400. So for $1300 before tax I can get everything I will probably ever need for my computing, camera, video recorder, etc.

Derek Martin

>>Nearly a million Galaxy Tab owners would seem to disagree

Not so fast.
Purchasing something is vastly different from giving it a high satisfaction rating. In fact, you can’t give it a rating at all until after you’ve purchased it, which is all the Tab owners have done at this point.

Charles Jade

While that’s true, after thirty days or whatever the return period is, the purchase equates with a certain minimal level of satisfaction. The larger point is that it’s ludicrous to suggest a 7-inch tablet is too small when a 3.5-inch tablet is not.

Derek Martin

I’d argue that a 7-inch tablet is too small if you already have a 3.5 inch tablet. If it’s your only tablet, it’s probably fine. If it’s a secondary tablet, you want a bit more differentiation.

Charles Jade

That is Steve Jobs’ theory, too, and it will be tested in the coming months as deluge of 7-inch tablets reach the market. If Apple launched a 7-inch tablet and the form factor failed, the cost of withdrawing it would be nothing compared to missing out on the market should the form factor succeed.

Willy

I do not agree with this article.

Apple and we (users) do not need 7″ iPad or any 7″ pad because is to small to use it as pad or small computer. Steve Jobs is right, because 10″ iPad is just perfect size, not to small – not to big, an I have iPhone 4 that is almost 4″ so I DO NOT NEED other small device to bother reading small text. 10″ is just perfect.

Danno Bonano

We’ll see how the 7″ market pans out over time. Again, not a big enough differentiator compared with a Droid phone or iPhone. I have one of those in my pocket and don’t need to stuff the Tab in there as well. I believe people just dislike Apple sometimes to dislike Apple. If people looked at things more objectively we’d have a much more interesting and fair discussion.

Longevity will be the key here. We’ll see how many Tabs are sold over the holidays and January. Knowing that Android Tabs are already outdated with Google’s realization, admittance and announcement that Android isnt a platform for Tablets, anti-Apple buyers would be wise to wait until mid-2011 for the Chrome OS powered tablets.

Unfortunately, Chrome OS is designed with the concept of a “dumb terminal” in mind meaning that most applications will be web based and run from the cloud.

Simon

I thought the reason that all the Android tabs were 7 inches is because Android can’t yet support a resolution that would look ok on anything larger? I’m no developer but I asked some one who was in a position to know and that was their response, if that’s the case then your argument on 7 inches being better than 10 for weight etc is mute as it is a choice determined by the OS and not the manufacturer.

If I’m wrong I’m happy to be corrected btw :)

Jahan Khan Rashid

Although samsungs advertiaing campaign is pretty impressove it could be much better, for instance in the UK you get a £165 samsung movie vouchwr to be ised to purchase or rent any movie, 5 ebooks of your choice from whsmith, 50 mp3s of your choice to keep, 7 gameloft hd games of your choice, over £200 WORTH. Much better value than the ipad. I love the ipad but the tab is what travels with me. It is the sweetspot size!

S Ballmer

No worries for the Apple. Look for the iPad 2 to pack some eye-popping mind-blowing features and throw in some Apple secret sauce in the mix and you got yourself the best darn tablet on the planet for sure. Sorry Android fanboys but everything you been doing is just copying other people’s work, you have not crossed the threshold and actually exceeded the mighty iOS platform so cool your jets and sit back and watch Steve take ya’ll to school and teach you young whipper-snappers how to do tablets right. Peace out. Chill.

Aimankelapa

Yea I agree with john. Even if it was 7 inch, would it fit in your pockets? U still have to carry it around just like the ipad. For gamers, im sure that they would prefer a bigger screen than the small one. About the flash draining the battery life and all those stuff, Im 50% agree and 50% disagree. I love my ipad’s battery life, i dont need to be worried to fully charge it before i go somewhere.

Jahan Khan Rashid

The tab fits in my jackets inside pocket, battery life is stonking aswell. Also the the person saying iphone uas 4″ screen size and theres not much difference up to 7″ is totally wrong. The tabs screen is 4times the size of the iphone 4!

MattF

Based on what happened with the iPod, the next iPad 1) will be lighter and thinner 2) will have a ‘mini’ version 3) will -not- be cheaper. It’s also likely that 1) the display will be improved in some way– brighter would be good, IMO, 2) maximum memory will be increased.

It is not likely that the need for iTunes synching will change this time around. Someday, iTunes will be replaced by two or three different client/server functions, but this is an OS issue. And Flash will -never- work on iOS devices.

Jay Kay

I dont understand why ppl make flash such a big issue i dont miss flash on my iphone 4, the writer is anti-apple, buying samsung plastic 7″ tab in 500 and ipad aluminium 10″ in 600, its a clear comparsion who is making good money, but its a matter of choice what u like doesnt mean the other should stop making, when i used ipad first i thought its too bug and it should be arround 7″ then gal tab came out and i used tgat as well and then i believed wat jobs said that 7″ tabs are just 3.5″ bigger smartphones. Waiting for ipad 2 keeping fingure cross for 10″ and lighter. Its quick to fall in love with ios devices, but you have to make urself beleive on other devices that i love it.

Luis Garcia

You nailed the reason Apple won’t really react to the “Android Challenge” that you describe: they don’t need to do anything “so long as the company is happy with a minority (if highly profitable) share of the tablet market.”

As long as Apple fanboys stick with Apple, Steve Jobs will have a solid market to sell to.

SJS

Apple wont change & they will lose the smartphone/tablet game to Android just like they lost the desktop to Windows.

in fact this will be Steve Jobs legacy, the great visionary that could never get beyond his own ego & caused his own company to lose 2 major wars.

Moe Lester

The iPad has been cleared by TSA and need NOT be taken out of your bag during screening. However the Samsung Galaxy Tab at 7″ can be too easily concealed and will therefore require me and my buds to possibly perform a closer examination of your junk if you knows what I mean. I know you and your seven incher will be happy to see me.

Moe “Big Hands” Lester

Mauricio Matos

I own both the iPad and the Galaxy Tab and people who dismiss the Samsung are wrong. Yes, if I had to choose one I would keep the iPad but there are things which the Tab does better. It’s better to read since it’s lighter and easier to hold for a long time. It can work as a phone (with a bluetooth earpiece, of course), something the iPad can’t, even the 3G model. Since it has a camera, it can do video calls…and so on.

Yeah…the importance of all those things will vary from people to people but my point is that some people may actually prefer the Galaxy Tab.

Nicholas

The market needs stories about winners and losers, when in fact the devices do vastly different things as you aptly describe. There are things that Android does better, and there are markets that Android will dominate. Apple will be a solid competitor as the Mac is now. We simply won’t see a flavor of Android dominate, so I think the comparison to Windows is really off-base.

The mistake of Apple is to neglect features that users want, such as making a call from a tablet. For business situations, there is a solid case for this. The iPad 2 will be better, and so will the next Android tablets. I will likely have both as well.

Hamranhansenhansen

Galaxy Tab works as a phone because it is a phone.

iPad runs Skype. A Skype number is $5 per month. Even with that, iPad’s monthly fee is less than Galaxy Tab. The next iPad likely runs FaceTime. If you want to make calls from your iPad, it is easy to do.

So iPad can sub for a phone more readily than Galaxy Tab can sub for a notebook. Galaxy Tab has no full-size apps, no full-size screen. It’s not going to replace 80% of your PC use like iPad does.

kevin

“sold” – be careful of the definition of this word. Did Samsung sell to end-users or just into the distribution channel? Microsoft once claimed to have “sold” millions of Xbox consoles, but later we find that those sales were into the channel, because several quarters of little sales followed.

WaltN

Click on the “a million” link and the article it takes you to says “it’s unclear” whether that number is retail sales or into the channel. I think it’s into the channel.

Charles Jade

Arguing “sold” versus “shipped” is whistling past the graveyard. The Tab is demonstrating the iPad is not the iPod, though I’d argue it still could be.

Jade Charles

Eg: You’re sticking to your conclusion, which looks more like a prejudice, despite the removal of the only supporting evidence you tried to posit.

Hamranhansenhansen

Samsung releasing a copycat iPad makes iPad MORE like iPod. Go look at the digital music player market: it is Apple, Samsung, everybody else. Tablets is: Apple, Samsung, everybody else. In both cases, Apple has the vast majority of sales and a leadership position that is so strong that people say “iPod market” and “iPad market.”

You are simply wrong when you say iPad is not iPod all over again. It is exactly the same. iPhone is the exception because phones are such an old and large market and it is dominated by freebies, and because it requires interactions with carriers. iPod is iTunes-to-go, while iPad is Mac-to-go. Same exact value proposition, just on a larger scale.

What is also the same is others can’t compete with iPad/iPod because Apple takes the best advantage of economies of scale, buying components in truly massive quantities, and using them again and again in a limited number of devices that sell in huge quantities. For example, iPad, iPhone, and iPod touch all use the same storage chips. All Android phones do not.

Eagle6

BMW? Bad example – in EU you’ll find that BMW nearly matches volume producers such as Ford, Opel, etc. on competing model market share on retail sales.

Hamranhansenhansen

BS.

Market share is only good if it gets you profits and developer support. Apple already had over 50% of the profits and over 50% of the developer support. The apps make a device sticky. A highly-profitable company can be expected to stay in the market for years. Apple has the most desirable products and the most loyal users, as shown in every survey. They have the only mobiles with a desktop class operating system and desktop class apps. They are in a great position to scale as technologies in mobile become more desktop-like.

There isn’t anything bad that can be said about Apple’s position in mobile. They were not even in the market 4 years ago and they came in and spanked every single player.

WaltN

The gist of your article is that Apple should turn the iPad into a netbook, engage in model proliferation and join the race to the bottom on price. I doubt that you’re going to receive a job offer from Apple any time soon. You might want to try Dell or Asus, they think a lot like you do.

gmark13

The only “race to the bottom” Apple competes in is market share. History (see Android OS vs iOS in smart phones) tells us that the iPad will lose market share rapidly in 2011. By the end of the year it should stand at about 50% compared to 95% now. 2012 will see further loss in market share to about 30%.
Apple will continue to make good money on their products but because of the way Steve Jobs demands things are done
the iPod will remain as the only dominate product from Apple where market share is concerned.

WaltN

It would be interesting to know how many of the 600,000 (or 1 million) Galaxy Tabs made it from the retail outlets that Samsung sold them to and into the hands of real consumers/users.

John

Stop harping on about flash it is buggy and drains battery life and I’ve not missed it one bit. And why is snycing to a computer so bad once u have done your first sync how often do normal people need to resync. 7″ tablet is too small if u want ultra portable buy a smart phone. If u want a smart phone experience with big screen real-estate 7″ just won’t cut it.

azam

it doesn’t matter if it won’t cut it – there will be sufficient amount of people that will purchase it. How can diversity really hurt someone the scale of Apple?

We can’t really look at these things from our personal lenses wondering if we’d use it or not.

Eagle6

“And why is synching to a computer so bad” ….. because we would like to get our ageing parents to be “silver surfers” on iPads but the additional cost/inconvenience of them having to own a computer is a deal breaker.
Apple are no longer the “must have” manufacturers any more. I’ve owned an iPhone 3GS since launch and the iPhone 4 offers nothing that would make me upgrade and competitors like the Nexus S are comparable if not better in certain areas (telephony especially).

PXLated

“the additional cost/inconvenience of them having to own a computer is a deal breaker”
You are aware that you only need a computer for the initial setup/config and Apple will do that for you in-store. From there on out it works just fine stand-alone. Sync to dropbox or some other online service if one needs backup.

Hamranhansenhansen

A computer is only used for backup and for upgrading the operating system. Many consumers own PC’s they never backup or upgrade the operating system. So an iPad that is activated in-store and documents stored on iDisk or Dropbox is a step ahead of a typical PC for many consumers.

Mathew

Really the Nexus S comparable? bc the original Nexus was such a success.

Jago

I think your last paragraph is the clincher….

Why on earth would Apple be interested in market share when it’s already able to take the vast majority of profit share from the markets it competes in…

Seems like Apple doesn’t really need to do any of the things you’re suggesting…

Charles Jade

Apple does not need to do anything, and I believe events will play out like the iPhone, which will be great. However, imagine if an aggressive strategy sacrificing more profit now resulted in the iPad being like the iPod. There is risk, but the reward could be 70 percent market share in countries like the US.

Hamranhansenhansen

iPad is already like iPod. iPad has overwhelming market share (95%) followed by Samsung and then everyone else. Same with iPod. Many people call all digital music players “iPods” and many call all tablets “iPads”. The reason other companies are having trouble competing with either Apple device is Apple’s strategy of making 1 per year and selling many, many millions, so they have the best economies of scale, they get components much cheaper than anyone else.

Hamranhansenhansen

Also, Apple already has 95% market share in tablets, including in the US. They don’t have to do anything differently to achieve 70% plus market share, that has already been achieved. And tablets is a kore mature market than music players were when iPod entered, and iPad is a more mature product than the original iPod. For example, it is running iOS v4.2, not 1.0, and iTunes is on something like 95% of consumer PC’s.

Jasen

Because resting on your laurels is the first step on the road to irrelevancy.

Jasen

That said, Apple is inching closer to competing with itself, it has to walk a fine line.

Hamranhansenhansen

If there is one thing Apple does not do it is rest on their laurels. That is the mistake the non-Jobs Apple made with the Mac. The new Apple clearly learned from that.

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