Web Reviews

Apple iPad Set to Change the Way We Consume

Indianapolis, IN - February 1, 2010

“The hype and speculation leading up to the launch of the iPad was unlike anything in recent memory, except perhaps legendary inventor Dean Kamen’s promise that the Segway ‘would change the way cities are designed.’”

– Jim Cota

When Apple CEO Steve Jobs stepped onto the stage at Yerba Buena Center for the Arts in San Francisco on Jan. 27, he did so to deliver the news about a new product that he promised investors “would be a significant event.” Prior to Wednesday, he had also been reported to have said that this was perhaps the “most important thing I’ve ever done.” As Michael Arrington of TechCrunch points out, “Coming from the man who has created so much, that’s saying something.”

The hype and speculation leading up to the launch of the iPad was unlike anything in recent memory, except perhaps legendary inventor Dean Kamen’s promise that the Segway “would change the way cities are designed.”

We all know how that turned out.

So exactly what is the iPad, how is it different from consumer electronics devices that are already out there, and– perhaps most importantly– what does it mean for business?

The iPad is a computer, sure, but I think the best summation of the difference between it and the one on your desk (or in your laptop bag) is that the iPad is primarily meant for consuming, not creating. Like two of its flagship products, the entire iPod line and the iPhone, it’s meant to enable people to consume, not create.

Interestingly, both of these products have also created complete business environments to support them. iTunes is the number one music vendor in the US having sold more than eight billion songs. Since the advent of the iPhone, more than three billion applications have been downloaded and it’s expected to generate an estimated $1.4 billion this year, according to an analysis by Piper Jaffray.

Since the iPad is a device intended to help you consume, the obvious question (read: opportunity) is, “Consume what?”

For publishers and content creators, this is the key issue. From the time the web first found its legs, content has remained king. But as the amount of content exploded, professionals found themselves competing with amateurs and part-timers with the same access to readers. All of those million dollar printing presses and distribution channels became less important to spreading the message, and consumers were seduced by free information available seemingly behind every click. What we’ve learned over time, however, is that some of the free information is worth exactly what we pay for it.

Publishers, while struggling to remain relevant, have lacked a delivery mechanism that truly and accurately allows them to harness their collective expertise and provide it to the reader. Print is still print. The web is still the web. But the iPad offers a glimpse at something different: it’s always-on internet access and video streaming wrapped safely in the arms of a delivery mechanism (the iTunes Store) that has proven customers will actually pay for content they value.

The holy grail for all publishers will be the find a way to monetize their content without alienating their readers. To do this, they need to actively demonstrate the superiority of their content and provide it in a way that truly makes the reader see the difference. They’re responsible for the first part, the new Apple iPad is aiming to take care of the second.

By way of example, consider the last time you read a printed magazine and noted a reference that directed you to the web for additional resources. With the tablet, that notation is instantly delivered, adding texture and depth to the topic.

Or, if the magazine publishers succeed in creating relevant content that people see value in, they might find they have something else worth selling: ad space. Because of the always-on nature of the internet connection and its ability to be location aware, small businesses might have the opportunity to buy local ad space in national publications. For example, a small shoe store in Fishers might find it affordable and effective to run an ad in Sports Illustrated, because the ad only shows up for readers who are near his store.

For businesses of all types, a new content delivery mechanism might portend some interesting advantages. Certainly there are new ideas to be developed that will allow people to present their wares to the marketplace, so there will be obvious benefits for game developers, programmers, and the like.

The Apple design acumen is often credited with breathing life into commonly overlooked devices.

When the iPod was first announced, people wondered why they would need to carry their music with them wherever they went. Now it’s hard to imagine leaving home without it.

The iPhone simply nailed the design of a good smartphone; partly by throwing out what was expected and starting with a clean slate.

The iPad, in many ways, follows a similar path: This isn’t the first tablet PC. There have been several other failed attempts to make this work. But by starting with what they do very well—industrial design—Apple has been able to create something that you don’t yet have, but may have you soon wondering how you lived without.

Of course, I’ll have more to say once I actually try it.

For more information about the iPad, see http://www.apple.com/ipad/