Wednesday, January 27, 2010

Is There a Need for iPad? If So, Is it a Big Need, and Big Market?


"All of us use laptops and smartphones now," says Steve Jobs, Apple CEO. "The question has arisen lately: is there room for a third category of device in the middle, something between the laptop and the smartphone?"


And that's the question users, application developers, content providers and marketers will have to answer. Is there some clear need for a third device? And if so, what is that need?


Suppliers have been trying to get the features and value right for as much as 20 years, depending on how one wants to characterize the "tablet" market. So far, nobody has proven there is a large consumer market for devices halfway between a smartphone and a notebook computer. 


We do know there is a major mass market for personal music players, personal music players with Wi-Fi access and smartphones with touchscreens that handle native Web applications very nicely. 


What Apple hopes to prove is that there are similar needs for a "device in the middle" that is an Internet-connected media player, easier to carry than a netbook or notebook, but with a relatively-large display for media consumption. 


The relative lack of apparent demand when consumer surveys are taken is not the big stumbling block. Consumer surveys would not have predicted the success of most recent Apple products. The bigger issue is simply that the device must uncover some existing, large and unsatisfied need.


We don't yet know yet whether the iPad will uncover such needs or not. But that is what Apple expects to discover. 

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