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Apple and the iPad 2: Gaming the Market and Customers …. But at what potential cost?

Beyond the pretext of improved utility, the  iPad 2 appeals to people’s weakness for things shiny, smooth and blingy.  And the people lining up to snap up this tablet are the worst ambassadors for its utilitarianism: gadget fiends, resellers and high schoolers who just have to have shiniest, newest toy to keep up.  The indisputable fact is that there was very little to justify the “upgrade” that Apple has been trying to sell since March 2, 2011.  The tablet should really have been released as a 1.5  upgrade with little or no fanfare. Steve Jobs should have stayed home for this one.

iPad 2 - Black and White

iPad 2 Bling - For what its worth, the black trumps the white hands down.

But the real bottomline is that Apple should  have skipped this iteration or, if it really had to, done the right thing by the customer; and that is issued an upgrade that had serious substance.  For one thing, the current specs do not justify selling  this bling-bling for twice the price of the iPad Touch.

“Ipad 2 stands for: Ipod Touch with 2 cameras.”   Mark_01 ZDNet, 11 March, 2011 14:34

While there may have been strategic rationale to keep its edge over the competition, one cannot help but think that the iPad 2 was also a strategic mistake. There are people who will not buy this tablet even though they had been waiting for a year. That is money Apple has left on the table inspite of the (apparent) runaway sales. The faux pas may have left an opportunity for the competition to counter-pounce – but you and I know that that will not happen. That motley crew is just not that organized a bunch.  (It lacks the technical and production wherewithal to pull this off.)

Within a year, Apple has created massive demand for a new product segment. As impressive as this is, it also illustrates the speed with which the next competitive threat can develop. The developments at industry participants like Best Buy, Dell, HP and others demand attention. Investors are right to praise Apple’s successes, but they should also view potential threats with an open and cautious mind. (Seeking Alpha)

As already alluded to, the decision to release the iPad 2 was clearly aimed at maintaining Apple’s edge over its competition with the market and an impressionable customer base. But was it worth the shrug of more astute customers who were were clearly underwhelmed by the iPad 2 offerings. Was it worth sending them a-looking at other offerings because they couldn’t wait for the iPad 3. Was it worth deepening the cynicism over Apple’s annual come hithers. The smart customer has learned from the iPhone/iPod upgrade cycle.

The relative cheap price of the iPad 1 and 2  is part of the problem. And to that I say affordability is the worst reason for buying something. (Rant Alert:  It is  the biggest reason our landfills are bursting at the seams, not to mention the giant garbage patch that is burning a hole in the middle of the Pacific.) Check out  this stock article which, among other things, highlights Apple’s ability to undercut most if not all of the the competition on product price.

Quick Impressions On-the-go

I was totally underwhelmed by my hands-on experience with the iPad 2. Summary Verdict: I will not buy it out of sheer principle.

The tech writers who drooled over it absolutely befuddle me.  A side by side comparison of the iPad2 with the iPad 1 failed to impress me as to its necessity. I was left scratching my head a bit about the distinctions between the two. The camera,  facetime, faster processor and ballyhooed thinness do not amount to a salable hill of beans IMO – but to each customer their own I guess. If you are one of those people who buys an iPad a year come rain or shine, suit yourself – but if you are one of those people who casts a fish-eye on Apple’s annual hawkfests, then welcome to the club.

Now my cursory impressions of the iPad 2:

  • Go with the black version. The white version (while resonating with more traditional Mac esthetics) is a garish looking monstrosity which should not have seen the light of day along with the failed white iPhone 4.   The finish lacks the opacity that would give  it the nice silvery finish like the one you see on  Apple Cinema displays. Problem: Whey you try to paint glass with the current white finish you end up with a ghoulish translucency. Discriminating esthetes pick up on it right away.  What I noticed in the store was that there were bigger crowds around black iPads than their white counterparts.  And Craigslist resales seem to indicate that black iPads are selling more briskly than black ones. White iPads are so common that you could almost give them away for free at this point. My prediction is that unless the production processes improve, the white iPad may not see the light of day come iPad 3 time.
  • The novelty and scarcity inflected frenzy for the iPad 2 is gonna die as quickly as it spiked. Give it about four months and  people will be thinkin’ iPad 3 in  another 8months! I know, I know, its pretty sad, isn’t it?
  • Apple at this point has no choice but to make the iPad 3  (which will probably have a brand new name)  the absolute bomb.  Samsung and HP are looking to field real contenders, even if they end up not being  iPad killers.  There is also a crying need for a beefed up tablet for the road warrior: one that will double up as serious work horses the iPad 1 and 2 never hinted at apart from impressive battery specs.

BNSG on the technological tip.

© 2011 incrucible.net @ bnsg.wordpress.com

Key Links:

Apple is cheap, but stay cautious (Seeking Alpha)

The iPad 2 lines are ridiculous (Cult of Mac)

Five ways Apple botched the iPad 2 launch (Jason D. O’Grady, Applecore, ZDNET.COM)

iPad 2 ship date bleeds to april as iPad 3 plays iPhone 5 spoiler card (Beatweek Magazine)

Left turn: iPhone 5 could have more in common with iPad 3 than iPhone 4 (Beatweek Magazine)

iPad 2 Price List (www.thepicky.com)

Official Apple iPad 2 Price Page (apple.com)

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