HP's acquisition of Palm is all over the twitterverse at the moment. And everyone has an opinion on it, and what it means (which brings to mind one of my favorite movie quotes). There are precious few facts around at present - and only time will tell exactly how the acquisition will pan out. Either way, CIOs should know the following facts about HP and the acquisition of Palm:
Today, Apple announced a delay for non-US availability of the iPad due to extremely high levels of US demand.
This is credible. The iPad is a new category for Apple and arguably there is nothing quite like the iPad available from any other firm, certainly nothing with the same high media profile supporting sales. This makes forecasting sales harder than it would be for a new phone or a new computer. If the iPad was just a PC in tablet form forecasting would be easy. It's not.
With iPhone, Apple staggered its multi-country roll-out by five months. For iPad, Apple had ambitiously set out to shrink this lag to just one month - perhaps Apple was simply over optimistic?
However, even with high demand, it's completely possible that Apple is experiencing manufacturing or component problems as well. As a colleague once said about football: an incident can be both a foul and a dive.
What's going to be more interesting than today's news will be iPad pricing in Europe. Apple still hasn't announced prices and now plans to unveil them on May 10th. In the US, the iPad is sold at full retail price for both the WiFi-only and 3G version. Mobile internet data is offered as an ad hoc pre pay addition. In Europe, I wonder if Apple and its European operator partners may go down a different route.
If mobile operators were to subsidise the iPad, as they already do for the iPhone, it would completely alter the sales prospects for iPad in Europe by dramatically reducing the up-front price that consumers pay and increase sales.
Regardless, until Apple announces both the price structure and actual prices, we'll hold off making a call on iPad sales outside of the US (where we forecast 3 million first year sales).
Apple announced iAd today as part of their OS 4 program today. I speculated in this post on why they purchased Quattro Wireless a few months ago, but now we have more details. This post is on iAd only - my colleague Charles Golvin has a more complete analysis in his post.
First, looks like Apple will leverage Quattro's business model and use their sales force to sell ads. This should work early on for large buys.
They are continuing to be very supportive of their developer community with 60% of the ad revenue going to the developers. Not a lot of details now, but this could be generous. Part of the revenue needs to go to the sales team as well. There will be less leftover for Apple. Models such as Admob's have more of a self-serve model that have the potential to be more cost-effective especially with smaller buys. The types of companies that will have the budgets to develop interactive ads that take full advantage of the platform - accelerometer and location plus rich media - will have the budget to spend on media as well - not just on the creative.
Beyond developers, Apple is continuing their focus on the consumer experience. They are looking to protect the quality of the user experience by controlling the ad experience. Steve has raised the bar on quality of mobile ads by keeping consumers within their existing application or experience. He anticipates that the ads will be engaging enough to be considered entertainment.
The iPad is not a PC and Microsoft will not respond to it with Windows 7-based tablets (tablets that use the full PC version of Windows have different strengths and focus). Microsoft is too smart a firm to try an oranges to apples fight. iPad is built on a smartphone OS -- iPhone OS -- and not a full fat PC computing operating system. Microsoft will respond in kind.
Microsoft has already emulated a number of parts of Apple's iPhone strategy: the new Windows Phone 7 OS limits multitasking; has no copy and paste initially; actively courts app developers; and has a centralised single distribution market for apps. Microsoft has the capability with the Windows Phone 7 series design to emulate iPad too. We can only guess Microsoft's intent, but with Windows Phone 7 series Microsoft is putting all the right capabilities in place to take its smartphone OS into other smart mobile devices, and not just further Zunes, but tablets too.