Week 2: Case Study Analysis
Dr. David Borghese
10 September 2012
Week 2: Case Study Analysis
Summary of Case Study:
The iPad is the first device that consumed all types of content from a variety of publishers and media in the industry. The original innovation can be traced back to a different time for Apple. As far back as 1987, Apple originally developed one of the first “tablet” under the leadership of defunct CEO John Sculley. A $100M investment led to the creation of Newton and the coining of the term PDA “personal digital assistant.” Due to lagging sales complete distaste for anything Sculley brought to Apple, the Newton product was retired in 1998 after Steve Jobs returned to Apple as CEO. Apple refocused instead on a long road to recovery with the Macintosh and the iPod.
One of the 1990’s Wall Street darling for its innovation in ecommerce of books, Amazon was first to successfully disrupt the marketplace, including its own when it introduced the first successful digital book reader. The “Kindle” was one of the first e-book reader device in the market, launched in 2007. Given Amazon’s access to publishers of book content, this was a match made in heaven. The disruptive impact was first felt in the publishing world. By 2010, e-books outsold paperback. In 2007, Steve Jobs had announced his entry into the mobile phone market. Given there were again other predecessors such as Palm and the Blackberry, none took off as well as the iPhone surpassing all its competition within a few years. The experience with the iPhone became the new standard for unrivaled experience for smart phones. Marrying the touch technology of Palm and replacing the scroll of the Blackberry with the swipe, Apple captured the hearts of smart phone users, attracting masses that found PDAs or smart phones confusing to use.
With an Apple cult base of millions around the world, Steve Jobs announced the iPad in 2010, only 3 years after the iPhone. Many were surprised with this move given so many PC manufacturers failed to see strong sales with their own tablets. And with the size of PCs shrinking and costs dropping, market analysts were uncertain as to why users would buy a tablet at the same cost as a PC. Initial reactions to the announcements were mixed. Market analysts underestimated the cult following of Apple, and its thousands of developers and engineers that have become part of the Apple success. While the aesthetic beauty of Apple devices certainly drew the users to look, it is the ease of use applications and myriad of options that closed the deal. The ecosystem that Apple built with the iPhone and iPod using iTunes seamlessly integrated into the iPad, setting up the iPad for another Apple success story.
iPad was both a threat and an opportunity for the publishing industry. This is the first device that was truly built for content consumption rather than creation. Publishing companies realized that they had to change their business models quickly to capture the opportunity or they would lose huge market share. Now that they found a device that mimics turning pages, that renders photos and images in greater detail than a television, digitizing content and monetizing it became high priority. Media outlets realized they too had a huge opportunity to join the digital disruption and partnered with several application developers to render their content. Joining the Apple ecosystem, media outlets leveraged iTunes to deliver their mobile apps and began to develop mobile apps that can engage their customers with live content, streaming videos and social media for interactive engagement. TV shows and news video clips are now a common place on the iPad and other tablet devices. As Apple iPad sales grew in parallel with the growing number of content applications for the iPad, more followed suit. Enterprise and small medium-size businesses...
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