Apple Investor

Capital Preservation First, Maximum Profits Second

The Apple Investor Reviews the Apple iPad?

by Ernie Varitimos on January 28, 2010

Apple has introduced what is essentially a giant iPod Touch. There’s NO Camera! ARG! And AT&T is the carrier, but there’s no need to sign a contract, it’s month to month for 3G access, but no real need to use 3G because it’ll work with WiFi and is free on AT&T WiFi hotspots.

Please don’t take this the wrong way. The iPad, hate the name, will be a huge success. It’s definitely a Kindle killer, and at the starting price of $499, the iPad is a big winner! Where the iPad falls flat is no disruptive technology, just a well designed, well put together, very sexy device.

There are going to be a lot of people, including many investors, that are going to be disappointed with the lack of many anticipated features, like a camera, like a virtual keyboard with feedback, but when they get a chance to understand the brilliance of the iPad as a portal to the Apple iStore triumvirate (iTunes, App Store, and now the iBookstore), they’ll realize that this device is going to rake in high margin sales.

Tagged as: Apple, iBookstor, iPad, iTunes

drrjv

1. Wonder why Pandora and others can't multitask like Pocket Tunes can on the iPhone.
2. The A4 processor is the iPad is apparently very fast and multi-function according to the reviews I've read (can measure processors by speed anymore)
3. Is multi-tasking really a big issue? The iPhone multi-tasks where it counts (phone and iPod) whereas Verizon Droid multi-tasks everything but you can't talk on the phone and do any 'data-related' activities at the same time.
Richard

I can't find the original URL on this issue but here is a related reference.

http://www.cultofmac.com/a-modestly-radical-proposal-for-fixing-multitasking-in-ipadiphone-os/28594
Richard

Forgive my ignorance, I completely forgot a crucial fact. The iPad is not multi-tasking (and it is only 1 GHz, not even a dual core 1.7 GHz Atom). Developers like Pandora Radio are concerned because users are going to expect it to play in the background but it can't, since this is a single processing task system. With the small screen iTouch and iPhone this wasn't a problem. iChat is inherently multi tasking. This is the trade off for the long battery life (nobody would want to recharge this every 4 hrs).
Also in my particular case, we all run multi core 3GHz or faster machines, not sure if a 1 GHz could keep up. Just wasn't thinking.
Richard

I have family members spread all around the country (all in major cities), we use video chat a lot on weekends. In a work setting it is not as compelling, you would have a webex presentation and never see the presenter. I have had good performance with my son who is on wireless N (I am on Time Warner with data boost). A lot of the networks have not been designed to send information out at anywhere near the down load speed. That is a build out that will be in more demand over the next few years. Being able to carry a thin light weight slate around and talk to anyone you know visually is something I believe many people would adopt if the performance was acceptable. They could call their friends and experience the Eiffel tower together, just flip it around to give them the view.
The problem is, until it works well for the masses, it will not be adopted by them. It may be better to delay a feature then have it be criticized for its (current) poor performance.
appleinvestor

Perhaps Apple didn't add a camera to the iPad for video conferencing because of an agreement with AT&. And maybe that's why they were able to secure such favorable terms for the price of the service.
Richard

I agree Ernie, although I also think AT&T might have given the favorable terms because they are negotiating with the Walmart of Media, and Apple was able to get them to bend. Soon we will know which network really has the better build out.

By the way, nice summary on the precipice the market is in right now.
drrjv

Cameras on desktops and laptops really don't get much use, in my opinion. Most of my office staff covered up the lens of the cameras on their iMacs, my kids have them turned off and I rarely use the one on my computer. I have one daughter living in Italy and most of the time have trouble with Skype when trying to use video (over fast (N) WiFi).
Richard

I really wish they had added a camera for iChat (a camera facing the user). My guess is that will be in the next model introduced about a year from now. The fact that it is unlocked is very kind, and getting AT&T to sell a $30/month unlimited data plan without a multi-month contact is a big plus (will Verizon match the price on a monthly unlimited data plan, we'll have to see). The price is attractive and the battery life is good. The performance of iChat on 3G maybe the problem (I think wireless-N could handle it). No USB port (that I know of), too bad, could have added an external camera with an AP.
David Irons

Three knowledgeable observers think the iPad's a game changer:
- http://www.rinich.com/post/357307070/this-is-why-its-worth-learning-about-advertising
- http://www.suntimes.com/technology/ihnatko/2015552,ihnatko-ipad-apple-launch-jobs-012710.article
- http://www.stephenfry.com/2010/01/28/ipad-about/#more-1965 (annoyingly split into four pages)

Also the inestimable John Gruber at daringfireball.net has his usual thoughtful reactions, plus useful links to others. (h/t to son Nat for these)
David Irons

Three knowledgeable observors think it's a game changer
FullEnglish

The disruptive technology was started with the iPhone and iPod Touch, and now with the iPad we begin to see how the future of computing will be all about 'touch'. The laptop has become the desktop, and now the 'tablet' form is the new mobile device. I never thought I could do without a mouse but after seeing the iPad demo yesterday I can now see how it will be possible to do most things using touch and gestures. Apple is thinking so far ahead of the game.
Paul Guerra

Very Disappointed considering all the hype. Apple may have tarnished its image by shouting fire in the theater when it was only some smouldering waste paper in a waste basket. Don't hint at changing the World when you are only making incremental improvements to your product line.

No wonder the stock is under so much pressure. Jobs may also have hurt his reputation going forward.
David Irons

There was no iTunes before the iPod, no iApps before the iPhone (and no camera on the early iPhones). What kind of ecology of apps, books, magazines and other mediawill iBooks develop? V1.5 is maybe 9 months away There will be more features, and a camera (or two). I also think one probably has to hold it to truly appreciate it. Finally, perhaps most important of all, how many tens of millions people already know how to use this hardware? And how many hundreds of million credit cards does Apple have on file? Has there ever been a better primed audience to try a new product?
drrjv

1. I don't see a need for a camera.
2. I'm glad it does not have FLASH.
3. ATT has been great in my experience (former VZW customer).
4. David Pogue has the best article on the iPad (especially comment re: bashers)
http://pogue.blogs.nytimes.com/2010/01/27/the-apple-ipad-first-impressions/
5. With stock down, may be good time to buy.