iPAD effects, new opportunities

Apple is famous for launching different from generic products in the market and gain from it. It has proved by phenomenal success from iPOD in 2001, iTunes in 2003, iPhone(& iTouch) in 2007 and recently it launched much awaited iPAD on their keynote series on 27th Jan 2010. Since the launch of the product there has been lot of hues and cries about the product, so one question comes in my mind, will iPAD be able to enjoy the phenomenal success, other apple products have enjoyed? Will it be able to define a new market again?

As discussed by critics, iPAD is nothing but an enlarged version of iTouch with iBooks application with several options for broadband connection. Apple's primary intention is to redefine a new market for digitization of books that has been captured by Amazon's Kindle to some extent and leveraging its existing iTouch framework. While iPAD will give more freedom towards using the product as a digital book reader apart from the regular iTouch/iPhone functions where one can check mails, browse internet, play games and enjoy 1 Million + iPhone applications.

One question arises in my analyzing mind, if one person already owns iPhone and has 3G connection, is it wise to get an iPAD with 3G connection?, Can't Apple come up with connectivity bluetooth/wired connections that can be used to leverage the existing 3G connection. It will certainly not affordable for any person in generic income group to have two 3G connections and affects sky-rocket the monthly telephone bills by just newly launched internet products in the market. No doubt the product will certainly create a new market, different from a internet phone and laptops, and its ability to access internet more better and convenient way, redefine digital books market.

While Apple is renegotiating contracts from publishers for selling e-books $12-$15, Amazon is certainly feeling heat from the publishers to renew the contracts and raise the e-book prices from $9.99. How it will affect the Kindle's market share?, Though Kindle has captured good amount of market, it is still contributing only 2% on topline of the AtoZ, the internet bellwether, so it will be very minimal effect on Amazon's revenues. But if Amazon is able to negotiate a new deal with existing established players to launch a similar product, it would be able sail the new market with better market-share, revenues and a completely new business. Say Microsoft is able to make a deal with Amazon to launch a similar product, it would be a win-win situation for both the firms, giving a new market share to Kindle and creating new opportunities for Microsoft in book reader, tablet market share and unknown advantages on solidifying its Zune developer's network, Microsoft application's store and many more hidden new opportunities to compete in iPOD/iPhone market-share.

Google is rumoured to launch a brand new iTablet in coming months to compete with iPAD, though it is facing certain legal hurdles from book publishers for their google books store.

Anyways, product reviews and competitor's actions will certainly tell the future of newly created market, so waiting and watching the new game, till a product is launched that satisfies my requirements to buy it .....

-Amit