(Image courtesy of www.redmondpie.com)
No matter what you think of the recently announced Apple iPad, it’s clear that no other company gets the attention Apple gets when announcing a new product. For Apple, this is generally a good thing. But, they need to make sure they get everything right: the product itself as well as the product positioning.
When it comes to the iPad, they got the product right, but they botched the positioning a bit.
The iPad is a Kindle killer, no doubt about it. In June, 2009, I paid $489 for my Kindle Dx. The Kindle Dx is roughly the same formfactor as the iPad, which starts at $499 . However, the Kindle Dx can’t hold a candle to the iPad. The Kindle can’t play video, doesn’t have a color screen, can’t run apps, and can barely (and I mean BARELY) browse the web. No bones about it, Apple did just as Steve jobs said in his presentation. They stood on Amazon’s shoulders and took the Kindle Dx form factor to much higher heights. Had Apple stuck with this positioning, is there any way the iPad could lose? Now, the Kindle does come with always-on 3G and no monthly fee. But, for $629 and $14.99/month, most prospective iPad users would still say there is no competition; the iPad is the better play.
The mistake Apple made: asserting that geeks will be able to replace their netbooks with iPads. This is clearly not going to happen. This assertion reminded me of when Steve said he replaced his high-end audio system with the failed Apple Hi-Fi. No way. Netbooks are cheaper, they run Windows, Linux, and some even run Max OSX illegally. Users can choose what apps run on them, and they can multi-task, though usually to their detriment. Why fight this battle? Let the netbooks run their course.
So, the bottom line is pretty clear. Apple should have positioned the iPad as a revolutionary device that builds in the initial success of the base eReader. It adds rich multi-media capabilities, gaming, app-store access, and it can even help you get work done in a pinch. For some, with the added keyboard dock, it can even serve as their complete mobile computing solution.
Strangely, I have not heard anyone complain about the fact that the Kindle Dx can not multi-task, has a worthless browser, and can only run apps that Amazon allows it to run. Apple is re-discovering that it’s tough to be on top. Shouldn’t they have learned this from their 1980′s experience?
2 Responses to “iPad vs. Kindle: The debate Apple should have started.”
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February 1st, 2010 at 2:26 pm
Hmmm… I am not sure that the iPad is a “Kindle killer.” Amazon has positioned themselves well with their two separate business units, so that the Kindle (as reader/book seller) can easily integrate into the iPad, just as it currently works quite nicely on the iPad Nano (er, iPhone and iPod Touch.) I wrote on this back at my blog (along with a few other thoughts on “killer” products.
You do bring an interesting discussion forward though in mentioning netbooks. It didn’t seem to me that Jobs was trying to reach the geeks, but rather the huddled masses that yearn for something less “techno-centric” than the netbook. There are those that find netbooks “too geeky” and yet they crave portable computing. THESE are the people the iPad will reach.
Oh–and the people that I have heard that say this will replace their Macbook when they travel.
February 4th, 2010 at 8:27 pm
[...] let’s consider what the device is for. Tony was absolutely right that Steve J missed the mark with his comments about netbooks. The iPad should be firmly compared [...]