Does Apple Need a Bargain iPad to Remain Competitive?
With the announcement this morning from Barnes and Noble that they are releasing a new Nook tablet that features a color screen and runs Android’s Gingerbread operating system people are back to questioning whether Apple will be intimidated and interested enough to release a smaller and less expensive model of the iPad. With this new Nook measuring in at 7″ and priced at only US $249 it looks to be in direct competition with Amazon’s Kindle Fire and the lesser-known Kobo Vox, with each of them presumably aiming to steal market-share away from Apple’s iPad.
For people looking for a real bargain, both Amazon and Barnes and Noble offer a non-color version of their eReaders for less than US $100 that will offer users the ability to quite comfortably read and enjoy digital media. I think it goes without saying that those devices really aren’t intended to be iPad-killers and rather exist for people who are looking for a very use-focused device.
This isn’t the first time somebody took aim at the iPad and it won’t be the last, but the real question is whether they will be successful. Being honest, I think the real goal of these devices is to be cheap enough that people can’t resist and feature-rich enough that people who wouldn’t have taken the plunge into tablet ownership just yet can whet their appetites on something they feel is a little more palatable.
Study after study has shown that people aren’t purchasing an iPad based on cost. It has been shown that when people are shopping for a tablet, they are first deciding whether they want ‘an iPad’ or ‘something else’. If they’ve already chosen to go with that something else category, the competition begins amongst those non-iPad devices.
It would be fair to ask whether Apple should be creating something more entry level to capture the attention of those consumers that can’t quite justify or afford the cost of the full version but I feel safe in assuming they won’t. Apple stands behind the value in their products and creating a bargain-iPad would mean cutting corners and eliminating things that they have spend considerable R&D time developing and perfecting. Instead, I believe Apple will continue to assert that the form factor on the current iPad is superior enough to warrant the extra expense.
Let’s not forget, you can always get yourself an iPod Touch if you want the Apple experience iOS 5 functionality without the iPad investment. I think that really is Apple’s answer to the ‘we want something smaller and cheaper’ demand.