Has Apple done it again? This is the question that whole Telecom, IT and Entertainment Industries are doing regarding the new I-Pad. No consensus though whether we are facing another Breakthrough or a big bluff.

You can definitively sense the hand of Steve Jobs in everything surrounding the launching on this new gadget: Secrecy partially unveiled some months ago, unraveled nervousness along the Industry, e-media and investors speculating about what was to come and a superb presentation by the Lord of the Minds, Steve Jobs, amazingly covered in all sort of media all around the world (just do a Google with “I-Pad news” to check what I mean).
So far so good, but will it really work? Will it be up to the expectations they have created? Will it shape the whole Industry as the I-Phone did? Or are we dealing with a fake hybrid that will not find its away around?
Very hard to say. But I will cover some variables that will have a significant effect on its mid and long-term success:
1. EXPECTATION MANAGEMENT
They are key for the will eventually determine the level of customer satisfaction, responsible to a big extent of the virality and apostleship Apple has.
So far they have created a sort of Overheating that has brought the first set of critics. I mean, the expectations that were created around the product were so high that many analysts and consumers felt disappointed when they faced a product that compromised functional capabilities (no webcam for instance) for the sake of an aggressive pricing.
Which has led to a second level of discussion: What are we dealing with? Is it an e-reader? Or a low-end laptop? What is it good for? What are its pros and cons against existing products and categories?
Being able to respond to these questions and manage expectations will be critical in the mid and long term.

2. CONTENT MANAGEMENT
The launch coincided with the launch of a new Bookstore by Apple. It was the only part uncovered by Apple, that is now offering a whole range of entertainment, dealing with songs, movies, apps and now books. The quantity and quality of the content will definitively be critical, as it happened with the I-Pod and I-Phone, with one relevant difference: When launching those in the market, they were the first ones to do so; in this case, they will have to compete against very strong and well positioned like Amazon, that will not make their life easy as you can guess.

3. PRICING AND DISTRIBUTION MANAGEMENT
Are they going to for an exclusive distribution? Or are they going to open it and make the dealers compete? How is the latter going to affect pricing? What level of subsidy will they let the Telecom companies to give?
Experience showed Apple that exclusive distribution was not the right way, for commercial or legal reasons, and in second step they opened it to new dealers in order to get competition running (take for instance UK and France ).
Whatever they do, they should take into account some of their KSF:
- Ability to go for a premium pricing affordable to the masses.
- Simplicity. Applicable to the hardware and content.
- Avoid price erosion coming from obsolescence and distribution battles.
4. CUSTOMER EXPERIENCE
Customer Experience is indeed one of the most important KSF for Apple together with Product Design and Branding. The outstanding experience they are conveying is the result of many factors, some of which I have already discussed.
Managing the former properly will assure the outstanding and consistent experience Apple (usually) has. However, another set of initiatives need to take place to make it happen again. Among which, one will be of special relevance for the I-Pad and future products to come: Customer Management. For, is it enough to let apostles create the Apple Cult? Is it enough to get Jobs covered massively in mass media? Is it enough having advocates that keep on taking whatever you launch? And last but not least, is it enough to cover all sort of entertainment space to get the customers or board?
I am afraid it is not. But is also true that one never knows what Mr Jobs has in mind…
To be continued…
THINK DIFFERENT!!!
Ignacio Gafo
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