AppleInsider StaffStephen Baker, vice president of industry analysis with the NPD Group, wrote about the anticipated launch of the second-generation iPad on his company's official blog on Tuesday. He said he believes distribution and availability of the touchscreen tablet will be an even more important factor than technical specifications for the next-generation device.
"As Apple talks more about small businesses and the iPad opportunity in enterprise it would be great if distribution focus was expanded to include more business-oriented channels like the office stores and the DMRs, such as PC Connection and Insight," he wrote. "Those chains and resellers offer Apple real chances to gain incremental volume versus shoveling a couple more units through carrier stores or adding another Web site.
"Although, even in its consumer focus, Apple's distribution clearly needs to expand into more regional CE outlets and test more alternative distribution opportunities like department and home stores, such as Kohl's or Bed Bath and Beyond."
Though the first-generation iPad was initially only available through Apple, the company gradually expanded its availability as 2010 went on. By the end of last year, the iPad was on sale from a number of partners, including carriers Verizon and AT&T; retailers like Target, Best Buy and Walmart; as well as third-party distributors.
In addition to distribution, Baker said he believes pricing of the next iPad will be a "critical" decision for Apple. This year, a plethora of tablet competitors running a variety of operating systems are set to hit the market and aim to unseat the iPad as the best-selling tablet device.
With tablet competition looming, Baker sees device makers competing for shelf space and an inevitable price war. If the iPad 2 launches with too high a price, Apple could potentially be undercut by a less expensive competitor at some point before the holiday buying season of 2011.
"Since Apple never responds to that type of price activity," he wrote, "the key to iPad 2's announcement will be whether today's price holds or Apple is the first one to shoot off a canon in a tablet price war."
For the moment, the pricing of Apple's iPad remains an advantage over its competition, with the 16GB Wi-Fi-only model starting at $499. Apple executives have said they see the tablet market as an important sector with huge growth potential, and they plan to be aggressive in terms of pricing.
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Wesley Hilliard
Marko Zivkovic
Christine McKee
Malcolm Owen
Amber Neely
50 Comments
Although I would question the help you would get in these stores (kohls, bb&b) it makes sense to have more distribution outlets
The iPad, like the iPod is so well known, it mostly sells itself, and there are few potential customers that don't know enough about it to make a decision to buy.
What is interesting is that right now there are only masculine (ie. best buy) and neutral (ie. target) stores. Adding feminine (ie. bb&b) outlets could certainly help.
"Since Apple never responds to that type of price activity," he wrote, "the key to iPad 2's announcement will be whether today's price holds or Apple is the first one to shoot off a canon in a tablet price war."
That would be cannon*, not a song. Also, my thinking is that they will keep the same pricing for iPad 2 and then decrease the lower models' prices when they introduce iPad 3. Keep the margins now and push the envelope this fall, when the two versions will hit a large amount of the consumer markets.
"such as Kohl's or Bed Bath and Beyond"
And just how would such a store market and position the iPad in their stores. Last time I checked, BB&B doesn't have an electronics department. Not sure if Kohl's does. I know, maybe the iPad can be put on display with the electronic photo frames!
More distributation channels would be great, but I think the ones this analyst suggests would relegate the iPad to "commodity" status. No way Apple does that.
"or Apple is the first one to shoot off a canon in a tablet price war"
I almost laughed out loud when I read this. First, the iPad is already lower priced than the competition. And second, has Apple ever participated in a price war? Much less actually start one?
Ok now Apple is starting to freak me out. If they keep going like this the next decade will be all Apple's.
It's almost as if the last two decades of utter brutal competition in the pc market towards apple skinned this company to its most efficient backbone, which is now fighting back.... and kicking ass.
I wonder, who will stop this monster that threatens to dominate the next decade in computing?
Just for this I hail Google, that probably has delayed and diminished the level of domination...
Pardon the interuption - I got a question - why is it everytime I get on this website lately there is an ad for XOOM next to the topics???? Can it at least be buried at the bottom or something?!
Sorry, carry on.
Back to topic - if iPad2 looks appealling (eg I feel whimsical) I may just purchase one tomorrow... but not at BB&B type location. Prefered locations are local tech stores Apple store or Best Buy. and if I have to, Radio Shack. Now if Sears had it, ya, that would be ok. But since Apple store is near by... might as well go there. All depends whats around.