Now It All Begins
So the iPad is out, or rather out in view.
Steve Jobs, looking as thin as the device, gave the world a typically flawless and hyperbolic show. The reaction is part excitement, part disappointment. This is usual. Hyped electronic devices always “disappoint” on launch and often go on to sell in huge numbers. iPad would be no different to iPod, iPhone, PS2 and other blockbusters in initially disappointing the pundits.
The cynics see the iPad as a big iTouch and not pocket compatible. The market sees things like this in terms of its mantra of: “buy on rumor, sell on fact,” so on the face of it, investors don’t like what they see but are probably selling out on the iPad’s proto-launch. However if Apple’s price continues to slide to, say $160, then the market will be telling everyone the iPad is a dud.
But long gone are the days when hardware was just hardware. Apple’s hardware plus software distribution platform of iTunes make the iPad a potential revolutionary product, cannibalising books, magazines and newspapers in the same way as iPod killed the popstar. Whether it’s iPad or another e-reader which is the comet that wipes out the old media dinosaurs is open to speculation, but in any event iPad along with the Kindle represent the opening shots of the old media massacre.
Clem Chambers is CEO of stocks and investment website ADVFN. For free real-time stock prices go to: www.advfn.com
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iPad Costs
iSuppli Corp., which generally waits until it can actually get the new Apple product to estimate its production cost, has decided to forgo hands on examination in the case of the iPad. They have--from just looking at it, it's amazing--decided the base model only costs $219.35 for Apple to produce. According to AppleInsider the base model won't make Apple anywhere near as much profit as the 32 GB model with 3G wireless priced at $729...that one reportedly costs only $287.15 to produce.
That's some profit! No wonder Apple execs have said they'd stay nimble on pricing! With demand for the iPad under scrutiny and this week's news that the "Take Picture" hint was removed from the Address Book app in the iPad simulator even we are starting to wonder if it's not worth waiting for the 2nd generation.
