Yesterday, Apple announced that it had sold 4.19M iPads in its fiscal Q4 2010, up from 3.27M in Q3. That means it sold more iPads than Macs in Q4, even though quarterly Mac sales were the highest they've ever been: 3.89M, a 27% unit sales increase from the year-ago quarter. Given that calendar Q4 sales typically account for 35%-40% of consumer electronics sales, we could be looking at 15M+ iPads sold globally for Apple in its first, three-quarter year. I am not the only analyst saying "Wow" right now.
There were tons of interesting tidbits in Apple's earnings call yesterday but I want to focus on a two points that I know are plaguing product strategists in this area. In particular, Steve Jobs attacked:
A funny thing happened while we in IT were focused on ITIL, data center consolidation and standardization. The business went shopping for better technology solutions. We’ve been their go-to department for technology since the mainframe days and have been doing what they asked. When they wanted higher SLAs we invested in high availability solutions. When they asked for greater flexibility we empowered them with client-server, application servers and now virtual machines. All the while they have relentlessly badgered us for lower costs and greater efficiencies. And we’ve given it to them. And until recently, they seemed satisfied. Or so we thought.
Sure, we’ve tolerated the occasional SaaS application here and there. We’ve let them bring in Macs (just not too many of them) and we’ve even supported their pesky smart phones. But each time they came running to us for assistance when the technical support need grew too great.
You're busy. And you have limited resources. But you think this iPad thing is big, right? But what about all these other tablets coming out? And Android TVs? And connected printers? Do you need to produce apps for all of these devices?
Welcome to the Splinternet. The bad news: Devices and platforms will continue to proliferate. The good news: There's action you can take now to build a framework for delivering your products and services on the platforms where it makes sense for you to be -- whether that's iPads today or wearable gestural interfaces tomorrow.
In a new Forrester report, we lay out the how-to of building such a framework. It's called POST -- People, Objectives, Strategy, Technology -- and if it sounds familiar, that's because we've written about how to use it to build a social media strategy, a mobile strategy, and now we're introducing it for the iPad and the whole category of "and" devices that will follow it. (You know...and Android tablets, and WebOS tablets, and connected TVs, etc.)
You are the CMO or the head of marketing for your company, and you’ve just finalized your social media plans for 2011 at the request of the CEO. Despite the unknowns out there, you are comfortable with your target audience, your message, your content plan, and the platforms you will use. You’ve even got a great candidate who loves the brand and wants to be the evangelist. But last week, your social media evangelist brought you an iPad to try out. You take it home for the weekend, you use it nonstop, and now you are thinking, “Where does this fit in my plans for next year?” While 2011 will see huge growth in spending on mobile advertising, and the display and search markets are back on track from the semi-slump of 2009, where does the iPad and other tablets to be announced from Google, Dell, Nokia, and others fit into your plans?
From a marketer’s perspective, the Web browser is pretty well understood — targeted banner ads that ideally would be integrated into content so as not to be intrusive. Mobile is getting cooler, and the ad platform to support visible ads on small screens is in the hands of the two (now) most popular smartphone platforms, Apple and Android. But this tablet segment seems to be gaining traction as a platform for what marketers dream of:
Bear with me one second. I am not denying the fact that iPhone owners are the heaviest users of mobile services. I am just saying that there are plenty of opportunities in the mobile space on other smartphone platforms and with selected audiences. Mobile is not just about applications or mobile Web sites. Even good old SMS can be powerful depending on the objectives you have set and the audiences you want to interact with.
What’s certain is that iPhone owners can only be a subset of your customer base. Only 2% of European mobile users report having an iPhone as their main mobile phone. Does that mean that there are no opportunities to target more mainstream audiences? Not at all.
A much larger near- and medium-term opportunity exists within other groups — particularly among young consumers, business users, and consumers with flat-rate data plans — as well as, increasingly, with new, competing smartphone platforms. In fact, if you’re not targeting them, you’re neglecting the majority of your customer base — including many consumers who are mobile-savvy but don’t have an iPhone.
Let’s make this even clearer. 96% of European 16- to 24-year-olds do not own an iPhone. Should you avoid engaging with youth via mobile because of that? I don’t think so.
As Apple announces it has sold more than 2 million iPads (no indication of US/global split), would-be competitors are unveiling their tablets at Computex in Taiwan. With so many products in the mix (and so few on the market), it can be hard for a product strategist to keep up with it all. So here’s Forrester’s quick guide to the tablets that are taking on Apple in the near future (note: this list doesn’t include devices that may have a tablet form factor but are primarily eBook readers, such as Acer’s planned 7” Android tablet. It also excludes tablets that are more rumor than reality. And I know just by putting together this list I will leave some off, and if that’s the case leave a comment and tell me which ones you think I should add. Okay, enough caveats!):
In the weeks since the iPad launch, there’s been a spate of rumors, “leaks,” and PR pushes around would-be competitors to the Apple iPad. By the end of the year, consumers will be able to choose from an array of multimedia touchscreen tablets including tablets that: