Six reasons iPad 2 will be a huge success for Apple

Photo courtesy of Engadget
Since last Wednesday's announcement of the iPad 2, we've heard a lot of tech bloggers stating that they think the newest Apple tablet is going to be a flop. Well, maybe not exactly a failure, but not as successful as the original iPad was.
I think the naysayers are completely out to lunch, and it's not just because I am a rabid fan of Apple products. Follow along as I go through my reasoning as to why the iPad 2 is going to be a resounding success for Apple.
Newer is better (or at least that's the perception)
Unlike the innovators and early adopters who write for tech blogs, there are a lot of people who don't buy the first round of anything; instead, they wait until the second edition becomes available. I heard this a lot from people who were gazing at my iPad with lust in their eyes: "I really want to get one, but I'm going to wait until the second generation comes out."
For those who waited, they now have their chance to get an iPad that is demonstrably better than the first model. It has cameras, it has a dual-core processor, and it has graphics capabilities that are much better than what came with the first-generation iPad. Those people who waited are still in the "early majority" of consumers, so they'll still appear to be ahead of the curve in terms of being technological leaders to their friends.
I think we'll see a lot of people who were on the fence about buying an iPad suddenly deciding to pick up an iPad 2. The features of the newer tablet address many of the complaints that the tech press had about the original iPad, and for a number of people, those features will take down the last barrier to making a purchase decision. Even if the iPad 2's specs aren't a huge step forward over the original iPad, for many people the perception is that "newer is better," and that perception is all it takes for someone to make a purchasing decision.
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Many networks are better than one
When the original iPad hit the stores last year, it was available only in the United States, and for a while, it was Wi-Fi only. When the Wi-Fi + 3G model finally made it to market, it was only available on the AT&T network. For a lot of people on the Verizon network, the iPad wasn't an opti as they didn't want to get a Wi-Fi version with a MiFi tacked on.
With the iPad 2, we'll see availability of GSM and CDMA models (as well as the Wi-Fi only version) immediately. Better network coverage by two American mobile carriers will make for less indecision on the part of potential buyers. As noted in the next section of this post, there will also be faster worldwide availability of the iPad 2, most of those devices connecting to GSM-based networks around the globe.
Greater Retail Availability
Last April during the launch of the iPad, there was one place you could buy one: at an Apple Store in the United States. As time went by, availability grew dramatically. AT&T Stores started carrying the iPad, then Verizon was selling them with mobile Wi-Fi hotspots. Best Buy had 'em, along with Target, Walmart and Sam's Club. The iPad is now sold in a huge number of countries worldwide, and the iPad 2 will only see a two-week delay before it starts appearing in overseas markets.
More instant availability in stores is going to make the iPad 2 even more of an impulse buy for people who were considering the original iPad but decided to wait.
FaceTime (almost) everywhere
Although I've heard other tech bloggers poopooing the impact of FaceTime on the iPad, I think that it's going to make the new device even more popular that the original. FaceTime has made it very easy for anyone with a Mac, iPhone, and now an iPad to easily make face-to-face video calls.
So why will FaceTime on the iPad be so compelling? It's the size of the screen. Sure, those Apple iPhone 4 ads last year tugged at the heartstrings and made video calling look like something that all the cool kids were doing. In reality, the 3.5" screen of an iPhone 4 doesn't have the impact of the iPad 2's 9.7" screen, even if it does have almost the same number of pixels.
Rather than having the family huddle around an iPhone 4 screen to make a FaceTime call to Dad in Afghanistan, they can now use an iPad 2 to make the call and everyone can see the screen. FaceTime's ease of use compared to other solutions (i.e., Skype, Google chat and other video chat options) and the new portability of the application on a large-screen device like the iPad 2 are sure to make it a selling point for many potential tablet buyers.
Competition? What competition?
Earlier today, Apple stock blogger "Sammy the Walrus IV" provided an enlightening analysis over at Business Insider about the iPad's market share. While Steve Jobs noted during his talk on Wednesday that "Many have said (iPad) is the most successful consumer product ever launched. Over 90% market share and our competitors were flummoxed," a lot of people were wondering where that number came from. After all, Strategic Analytics had shown the iPad's market share to be around 75% and dropping rapidly.
I won't go through the details here, as Sammy provides a logical argument in his post, but if you look at actual devices sold and not just shipped, Apple's market share does appear to be over 90%. Now, there is a certain percentage of the population that wouldn't buy an Apple product even if it was the only available product in its class, but a lot of people want to go with the market leader. Why? Just because they know that they're making a solid and safe purchasing decision.
During CES 2011, we heard about over a hundred new tablet devices that are expected to hit the market this year. Given the number of manufacturers who are going to be creating "me too" Android tablets, the noise and confusion in that part of the market is going to be tremendous. Sure, a few larger players like Samsung and HTC may pick up market share percentage points here and there, but faced with the overwhelming variety of devices that are going to be coming out, it seems likely that the average consumer will go with the iPad 2 because it's a safe decision.
Apps make the device
Robert Scoble made a good point in a post on March 2: "No apps, no sale." For the iPad and iPad 2, there are already 65,000 apps available. As he points out, the highly-touted (and over-advertised) Motorola Xoom has a whopping total of 16 apps, and most of those are smartphone versions that are stretched to fit the larger screen rather than apps that have been specifically designed for the big screen. As we all found out last April, stretched apps look like crap.
As for the other platforms, HP's TouchPad and BlackBerry's PlayBook, there are no apps right now. Zip. Neither of those devices are even shipping right now. Scoble also points out that in terms of hardware specs, most of these devices are remarkably similar to the iPad 2. So what does the iPad 2 have that the others don't? A huge variety and depth of apps.
Conclusion
I'm sure that this post will generate a lot of comments. There will be those who agree with my points and believe that the iPad 2 is going to do even better than the original, and then there will be those who think that the rising tide of Android devices is going to knock Apple out of the tablet business altogether.
Whatever your feelings, we'd like to hear them in the comments. Just one thing: please respect your fellow commenters and don't make personal attacks.
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Photo courtesy of Engadget Since last Wednesday's announcement of the iPad 2, we've heard a lot of tech bloggers stating that they...
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Responding to your reasons, Mr. Sande:
1. Couldn't agree more.
2. See above.
3. Yep, greater retail availability (including Wal-Mart) makes this device a truly easy sell, except when you're getting an iPhone 5 for your birthday and that is it. Glad the iPhone 5 *appears* to be going back towards the iPhone 3G/3GS design, I don't have any idea why Apple went in the design direction of the iPhone 4 in the first place.
4. iPad 2's FaceTime feature will really sell the device to so many families with a loved one working and/or serving our country over long distances.
5. The word "fragmentation" was never more truly uttered.
6. The iPhone was the exact same way. Apps really, really made the iPhone an easy sell for so many folks.
My 3G iPad was $729. I sold in on ebay (with a $60 case) 11 days ago for $625. Now, eBay takes a 9% cut, but my cost of ownership for those 10 months makes the decision to upgrade ridiculously easy to make. Facetime & skype with cameras? 9x faster graphics? 33% thinner? 13% lighter? Done.
March 07 2011 at 11:34 AM Report abuse Permalink rate up rate down ReplyThe thing is, why you are first to market--or when your first-to-market product actually creates a new market--you get to take-up all the best residences. In the same way a developer of a subdivision always puts his house on the best lot, AAPL did their research and took up all the best feature-sets with iPad. They chose not to build on the lot w/ a 7-in screen because research told them that consumers would know it was just a smartphone that couldn't fit in your pocket. They chose not to make a 2"-thick tab w/ quad cores so that it could run mouse-inspired flash w/o being jerky.
So now, a year later, it's iPod and iPhone all over again. Competitors have only one card to play, and that's to offer whatever it is that AAPL didn't. When you are late-to-market, there's little to be gained by simply being contrarian to the guy who already took all the prime real estate.
In short, you can't overtake AAPL in tablet, just as you couldn't in iPod (zune, anyone) or iPhone. You're only choice is Contrarian, but the different-but-worse crowd is only so big. In fact, until you can out-flank AAPL, youâre better off not even playing.
If history repeats itself, the iPad is doomed to utter failure.
Just think about the last time that Apple created an entire new market segment by making a device that no one really needed and few people even realized that they might want.
Sure the iPod did well for a while, but then other manufacturers introduced dozens of competing models with MORE FEATURES such as additional storage and an FM radio tuner (not to mention new innovative colors like 'fecal matter brown').
Then, exactly as all the smart people had predicted, iPod sales plummeted and you hardly ever see an iPod anywhere anymore.
Errrrr, Wait ..........
Never Mind !!
I bought a first generation iPad last year. This is very uncharacteristic of me as I rarely buy the first generation. Heck, last year was when I finally upgraded to HDTV and Bluray as well.
The iPad2 is a nice device but I don't think I will upgrade to it. Not because I don't like my iPad but because I don't think the improvements aren't worth the cost just yet. I will look at purchasing an iPhone 5 as an upgrade to my 4 year old cellphone. I will also look at purchasing a MacBook Air with at least 128GB of storage. That purchase definitely would have been an iPad if they added 128 or 256 GB models.
Let's suppose that one of Apple's competiters is able to produce a tablet that is every bit as good, as fast, and as beautiful as the iPad. Let's also suppose that they create a customer support system on par with Apple's (Genius Bar, top-notch phone support, AppleCare, etc.). Let's also suppose they create an operating system as seamless and as intuitive as IOS (this is beginning to be a stretch). How useful is that tablet without that Apple ecosystem (iTunes, iBooks, Airplay, 65,000 apps, etc.)?
There is simply no other logical choice at this time, or for the forseeable future, regarding tablets. Yes, the competeters are "flummoxed". Great word.
Not enough of an upgrade... well, for me it is. Why? Because I bought the WIFI-only version, as soon as it was available. Now I'm getting an iPad2 with UMTS. (in fact, I'm more into the GPS)
@Smitty: "PC makers (and that includes all of the manufacturers listed above) think it's all about the ports, features, and bullet points they can cram into their ads. (SD Card slot! Open OS! Video Out Port! Cup Holders! Seating for the entire family!) Good design is not about adding cruft, it's about carving it away. Why would people pay a premium price for a luxury item that does things more elegantly? Because those functions are done well, work flawlessly, and have no strange work-arounds to allow for other things that are hung on just to meet a bullet list. Look at any tool or device that you really enjoy using, and think about how the design of the device "just fits" with your use. I'll bet most of them are elegant solutions to the need at hand, rather than a "does everything sorta good" solutions to a variety of tasks."
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This is the best one paragraph summary I've ever seen of how Apple does things. I want to save this paragraph and post it anytime I get into a discussion of Mac vs. PC, because I believe it applies to the overall "versus" argument, not just iPad vs. iPad Competitors.
Your final quip about Android tablets knocking Apple out of the tablet market altogether made me actually laugh out loud. I know you had to say it, but come on, it'll never happen. I believe your point about apps is the most important one. iPad has 65k+ apps and growing. Sure there are die hard Android fans out there, but not nearly enough to take even a minor amount of market share from the iPad.
March 07 2011 at 7:50 AM Report abuse Permalink rate up rate down ReplyFunny, isn't that what most people said about Android Phones?
This market is just getting started.
Dont forget Apple is a business. The iPad 2 may not be a big update from 1 but you can't give the people everything cause there won't be nothing to have us come back for iPad 3! Apple is soooo far ahead of the game that they can't move too fast. Even though the A5 dual core is lesser of a upgrade from some other tablets, it's cool cause Apple has all of the share and they can do that! And then don't forget trade in value/buy back deals on the first gen.... I get 530 from gazelle for my 64 3G version but that's another story!
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