Michael Janzen

Today Apple announced the iPad, which is essentially a cross between a tablet computer and an iPhone. It appears to have a super easy-to-use interface and the expected sexy wrapper. It is most certainly a new class of device and should be a success; but it’s NOT the Amazon Kindle or netbook killer it was expected to be simply due to the price.

iPad Price

The price will range from $499 to $829. Kindles cost $259 and netbooks typically range in price from $300 to $500. Had Apple found a way to offer a version in the sub-$400 range I think they could have dominated this market.

Defending Apple’s Price Point

The iPad will be a far more capable device than any ebook reader or netbook for at least a year or two. So I can understand their reasoning for pricing it between low cost Macs and netbooks. My guess is that they are hoping buyers will agree that the added value justifies the added cost… but I’ll stick to my guns in saying that they could have cornered the market on this segment with a slightly lower price.

The other major competitor for them will be Google Chrome based tablets, (more here). In fact Google seems to be quickly becoming Apple’s and Microsoft’s biggest competitor on multiple fronts from hardware, to operating systems, to mobile devices.

In the end my money is on Google, not because they have a superior product, but because they have a superior business model and approach. They also seem to get that quality + low price will always beat top quality + premium pricing. Sad but true.

For those of you salivating over the prospect of owning a new Apple iPad you’ll need to get a sponge and mop up your keyboard because it will be some time before it hits store shelves.

As our technological world races faster and faster we see a common trend emerging. Innovation and meeting people’s needs always will always beat the competition in the long run.

Google appears to be at war with Microsoft as far as I can tell. Visit Google with Internet Explorer and in the top right of the page you’ll be strongly encouraged to switch to Google Chrome. I’ve been using Chrome on my Mac since they released it and I’m simply stunned at the stability and speed.

I’m not exactly your average computer user either and have years of experience managing teams of online application designs and web usability researchers. Not bragging just saying I’ve seen a lot of good and bad software and Google Chrome is amazing… an Internet Explorer Killer.

Apple has been rumored for months to have a breakthrough tablet in the works. Having watched Apple leapfrog the industry for a couple of decades now I suspect this new device will have the potential to stomp all over mono-function devices like Kindle and the print industry, just like it’s doing to the music industry. Apple could be positioned to steal more market share in print and recorded media markets.

Both of these examples illustrate the how the old-school digital and print world is loosing customers everyday because someone else from another industry is entering their information distribution world and stealing it away… simple because the newcomers aren’t bogged down in old-school thinking.

Survival of the fittest, and the fittest adapt and innovate.

Oh… by the way… television is next to go. Early adopters, like me, have already given up on that dreadful box and get our information and entertainment far more efficiently online. As Telcos speed up the internet more users will go online for their TV fix.

Now hardware builders like Dell are publishing notes for installing Google Chrome on their low cost netbooks. This little puppy runs Ubuntu Linux and while the install is still for geeks I suspect it’s only a matter of time before the open source community creates a installer for newbies. This will be followed by official pre-installed Google Chrome releases from the hardware makers themselves.

The key to all of this is user adoption of course and if Google has really build a no-nonsense operating system and the hardware costs stay low Google will stomp all over Microsoft in the personal computing market segment. Read my first post on Google Chrome to hear how I think Microsoft can survive Google Chrome.

I just watched these two videos produced by Google that demonstrate Google Chrome OS. Basically Google has taken the Pareto principle and applied it to an operating system providing more than 80% of what average users need their computer to do. I suspect Linux, Apple will survive Chrome but Microsoft will need to shift its focus.

• Linux will probably take the smallest hit because most geeks that use Linux will continue to do so and if anything dual boot Chrome. Linux also has the advantage of being an open source community and not a corporation.
• Apple has a diverse collection of strong footings like iTunes, iPhone, iPod, in addition to supplying a hardware/software package that is way ahead of the competition in terms of usability.
• Microsoft will be hit hard by Google Chrome because their Windows foundation will be weakened as common end-users begin to adopt this easy to use option. Apple has already shown that usability is the giant’s Achilles’ heel. Like most giants Microsoft has multiple strong footings like Apple but the demand for Windows will begin to shift away from home users. If Microsoft fails to see this unavoidable truth and doesn’t start to shift resources to their core strengths they are sure to fail.

I realize this is an outlandish prediction but it’s based on a simple idea. When someone (including a corporation) focuses on their core strength they succeed. Google has always seemed to do this extremely well. They are also masters of innovation and seem to still be growing fast and exploring new areas… which could actually be thought of as a core strength in itself.

Microsoft appears to be at a stage in it’s life were some serious change needs to happen. I suspect it’s because they are clinging to past successes instead of embracing the future of open source code and fulfilling user needs. To compete for mass user adoption one must keep up with what users want.

For example… Apple helped move the cellular phone industry ahead in one huge leap forward with the introduction of the iPhone. Google is about to do that to home computers. Those that aren’t well positioned and exercising their own strengths will figure out the hard way that old-school models are a recipe for failure.

From my perspective Microsoft’s core strength is it’s ability to provide enterprise scale solutions. Google tends to scare corporations because of their blackbox systems and unlimited thirst for data. So it makes much more sense to me for Microsoft to move more of its resources to enterprise solutions and away from home users. If they want to compete with Google in the home computing space quickly come up with a revolutionary simple new tool like Google has… otherwise don’t waste any more time in battle with someone who has you beat.