We are yet to see an iPad here in Asia, but it is certain that going by Apple’s legacy – this newdevice will bring about a change in the way people interact with these kind of devices. Its physical design, social connotations, ease of use, price, and many other facts that we will perhaps discover only when we start using it, can potentially spawn a new economy like the iPhone did with its Applications and iPod did with iTunes.  Here is my list of what it would and won’t do in this part of the world.

iPad Will

1. Usage of ‘Apple Services’ will expand exponentially: We have all seen how iPod and iPhone spawned an entire industry of accessories around them – especially products like speakers etc that act as docking stations etc. Now visualize iTunes, App Store and iBooks as three services that are spawning a range of products that help users utilize these three services. Do not view iPad just as a product; instead look at it as a bridge to bring in more users to the world of Apple services.

By bringing a superior experience to a portable entertainment device, Apple will be able to expand the franchise for its online stores like iTunes, App store and iBooks - exponentially.  This fits in with the industry wide trend of increasing revenues from content and data services and sluggish growth of revenues from mobile devices. (See chart 1)

Mobile Phone Sales-1
Chart 1

Suddenly Nokia, Sony, Samsung, LG among others look under prepared to compete with this evolving model. (Ironically enough, even Sony  - the inventor of Walkman – the first personal stereo - is also one among the long list of names making accessories for iPods and iPhones).


Sony for IPod now

2. Light users will finally get a real option: Other than gadget enthusiasts and die hard Apple fans who will lap up iPads, like they have done with other new devices from Apple– iPad will give a real option to many light & mobile users. I can see frequent travelers and elders as two immediate potential user groups. The latter group would especially like the iPad for its ease of use, portability and most importantly – picture –cum-photo frame capability.

3. Will take Apple towards masses (Netbooks have a definite reason to worry!): At $499, iPad is still more expensive than most of the Netbooks and even some Notebooks. However, if the announced price comes to Asia, it will reach many more users than what iPhones & MacBooks have managed to in the past. Let us look at the approximate price gap between Apple and other products in three key categories. Observe how the price gap is shrinking continuously.

Category

Apple Product

Competition (Approx.)

Approx. Price Difference

1

Mobile Phone

iPhone 3Gs (16GB)

USD 694

NokiaE71 Smart Phone

USD 276

USD 218

2

MP3 Player

iPod Touch (8GB) USD 202

Creative Zen V 4G USD 47

USD 155

3

Netbook

iPad USD 499*

ASUS ePC 1000 USD 375

USD 125

* Assuming same price as in the US

Although the price difference between Apple’s latest product and the competitors continues to be significant but the lower unit price of iPad will make it much easier for a prospect to own it.

This is a dramatic shift in Apple’s marketing stance. No more can Apple said to be a designer’s ‘designer’ choice and average Joe’s fantasy.  It is now becoming a smart and efficient choice. In this way, I see Apple becoming more like Google than continuing to be the Apple from the past. The only big difference still being, Open Vs. Closed source outlook.

This need to address a wider consumer group is perhaps also aimed at building a broader ecosystem of OS based devises as a countermeasure to Android’s increasing presence in devices beyond mobile phones. (See chart 2)

Android Devices Shipped-1
Chart 2

iPad Won’t

1. Notebooks need not worry (yet): iPad has not been designed to be a mainstream personal computing device. Lack of USB port, no CD/DVD Drive, limited memory, no LAN Port etc means that Apple does not want this thing to mess around with its own Notebook Sales.

2. Replace Kindle: Serious readers will stick to Kindle. It is not just about the battery life (10 days vs iPad’s 10 hrs) the iPad screen is better suited for watching movies and pictures than reading books. A serious reader will not hazard the strain on eyes because he wants a more beautiful thing in his hands. (But expect Kindle to respond with a better Kindle sooner than before.)

Personally, I foresee, eBooks gaining traction, movie watching coming to the lap not just in airport lounges but at home as well; Casual gaming becoming more engaging; Laptop bags making way for iPad folders; Photographs coming to life more spontaneously and in entirely new ways; Speakers and other home theatre system accessories spawning a whole new iPad ecosystem, among others.

In his presentation Steve Jobs stated “Apple is now the largest mobile devices company”, I would add by saying that Apple is a consumer electronics company that is increasingly making other consumer electronics brands look like manufacturers of ‘peripherals’.

I sincerely hope that the rise of Apple also leads to the birth of a worthy competitor.

While going through a recent edition of Businessweek, I came across a story on how publishing houses are trying to put up a front to counter the rising dominance of Amazon (Trying to avert a Digital Horror Story – Businessweek, January 11)

There is a mention of how people are interested in paying for a variation on the standard book viz. a single chapter or a searchable database. As a result some of the publishers are now considering bringing out iPhone applications for some of their books.

This is very fascinating. First books transitioned into their paper-free avatar –the eBooks and now they are going one step further – into applications.

There is a mention of a book called “What to drink with what you eat” which the publishers are now trying to turn into an app that is like a ‘virtual sommelier cum food critique’, featuring food and wine pairings and tutorials and flavour balancing.

This signifies a shift in the way publishing houses think and has impact on the way information would be packaged in the future. The example of a book turning into an application shows how knowledge is being turned into applied knowledge. It seems that just the way there has always been a market for knowledge from books, the market for the application of knowledge from that book will become bigger and bigger in the future. Being able to use the things that we read in a book - when we are in a meeting, or having lunch or when we are traveling, offers a big opportunity for books to expand their relevance and impact.

‘The application mind set’, as I call it, can potentially turn almost every idea, every bit of information into a byte-sized tool that is always on tap. Thanks to effective miniaturization of technology - the future of knowledge and information will go more and more down the application path.

“What can be the iPhone application for this idea?” is a question, that can help us unlock the potential of any good idea that crosses our mind in the future.

Marketers of Technology Products and Services can Help Travelers Get More Out of Vacations
(A version of this editorial was first published in Ad Age China) http://adage.com/china/article?article_id=139980
China’s leisure industry is a spontaneous dance of sounds, anticipation, restlessness, sensations, human heat and intense togetherness, good and bad.

The whole country seems to feel an overwhelming desire to see, capture and carry as much as possible. They want to touch, see, touch again and see it again and most importantly, see it through the lens of a camera.

The experience is all about capturing everything in sight with as many mega pixels as possible. And sightseeing is like a race against time, and innumerable fellow travelers.

Desire to capture the evidence of being in a place can even surpass the desire to experience the place itself.
So while the Chinese travelers are busy capturing they can sometimes lose on the moments and experience part. Add to this the fact that if they are unable to organize what they capture – they can even miss on these memories.

The relative inexperience of the Chinese leisure traveler is a reflection of China’s stage of development, and it offers fertile ground for marketers.

There are various ways to helping these Chinese travelers. And marketers of technology products can especially play an important role in this.

Film and camera companies can help Chinese tourists, many of whom are first-time owners of high-end digital cameras, find better ways of organizing travel pictures. Photographs can be brought to life in more ways than just sprinkling them on a blog, e-mailing them as large files or dumping them in some obscure corner of the hard drive,
For example, PC and Television companies can inspire the users through easy to use though music-layered slide shows on that can be viewed on large flat-screen TV sets. Right now only Apple comes close to providing this kind of inspiration.

Mobile phone companies and wireless carriers could offer more ways to use location-based services by developing and marketing applications that help people learn more about the temple in front of them or the myth about a lake they are walking past.

Even non- technology brands have many opportunities. Brands related to travel, travel accessories and hospitality could play a more important role here. So could brands that help people better understand the places and artifacts that so far they have only been clicking and carrying home in the flash memory of a newly acquired digital camera.

Automakers can help those traveling by car discover unknown attractions on the way to the hotel.

For those less savvy with technology, marketers could bundle promotional materials such as city guides with tourism accessories like North Face backpacks or camera lenses.

Advertisers have experimented with these ideas in western countries but in China, most remain unknown — even though the mainland has become a massive market for domestic tourism.

A moment between shooting those shadows

A moment between shooting those shadows