Apple Inc., a company that normally takes great care in keeping its product names highly descriptive and simple, stumbled last week at the launch of the its iPAD web tablet device last week. It seems a lot of people, especially women just did not take kindly to the iPAD name.
The Apple iPAD, is basically an iTouch (WiFi-only models) or an iPhone (WiFi/3G models) with a larger 9.7" screen and using the same iPhone operating system and capable of leveraging the iPhone App Store. Of course, some existing iPhone features have been stripped out (the camera for instance) and Apple does not see too many users wanting to hold up the bulky device to the ear and talk into it, replacing their mobile phone. Other key features users were hoping to see are still sadly missing: Multitasking support in the OS, Flash player support, and dual-cameras for video chatting.
As an owner now on his third iTouch, I just cannot understand why Apple picked to build a new product category under the name "iPAD" when it could have easily extended its popular "iTouch" product branding to the new tablet devices. Customers and the press would have easily understood the capabilities and the method of operation with a simple name like:
- iTouch 10", or
- iTouch XL, or
- iTouch Pro, or
- iTouch Tablet
Of course, Apple is the same company that made popular the iPOD brand to represent its portable music/media device. Not exactly the Sony "Walkman" brand simplicity out of the gate, but Apple made iPOD work for them! The only thing that matters is success, and Apple is way out in front of everyone when it comes to portable digital music players, touchscreen mobile phones and now larger touchscreen mobile tablets.
On a side note, an overseas contact of mine estimated that the iPAD build cost for a company ordering parts in the millions per year, would be around US$171 for the 3G 16GB unit and about US$17 less for the simpler WiFi-only model (not including the microSIM card or packaging). I'm sure iSuppli will publish their own tear-down cost estimates in the coming weeks. Add in R&D amortization costs, packaging, shipping, Q/A and Sales costs, and Apple still has plenty of room to make its 40%+ margins plus throw in some AT&T commissions and margins on App Store and media content sales and you can see why Mr. Jobs wants to build this into a key fork in Apple's income stream.
Personally, given that I have continuously upgraded my iTouch annually from 8GB, to 16GB and now 32GB, I am trying to quash any inner thoughts to purchase an Apple iPAD in its current first generation. I'm sure that by Fall 2010 or at least in Winter 2011, Apple will have at least upgraded the iPAD product line to include at least one camera, multitasking support and upped the base memory to 32GB. Hopefully, Apple also will give the users what they want and stop playing their corporate games and support Adobe's Flash Player.
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