Is Imagination better than Reality? iPad and Apple Stock drop

The Internet buzz for the new Apple tablet has been intense.  See the early blog case about it https://prstrategyandapplication.wordpress.com/2010/01/01/when-a-rumor-is-a-good-thing/.  Or go out online and find any of the thousands of posts and the invention.  It was rumored to do almost anything.  More specifically it would be a huge iPhone (iPod touch if you do not have AT&T) that would be a great book reader, wonderful gaming platform, perfect for on the going video, and change our lives forever.  An investors were excited by the prospect.  Apple stock constantly went up.  There almost seemed to be a correlation between iPad rumors and stock price increases. 

On January 27, 2010, the iPad arrived.  People finally had an official name.  The tablet had been rumored to be called the iSlate or simply called an iPhone on steroids.  Apple CEO Steve Jobs stood before the news media and showed what the iPad could do including a demonstration of its on-screen keyboard.  Finally the Internet had real information, not just rumors or what publishing executives claimed they learned when talking to Apple about creating content for the device.  http://www.ktla.com/business/sns-ap-us-tec-apple,0,3176809.story.  News outlets and bloggers created a second sea of information about the iPad touch.  Now speculation shifted from what it will be and do to how it will impact businesses, society, and individuals. 

We now know the iPad does read books, play video games, show videos, and web browses through the Apple Safari browser.  People speculate that Kindle finally has a rival.  A rival with better features (still speculative) and access to content (a known fact).  So iPad will impact the e-reader market in some way.   Next up is video games.  Smart phones brought mobile gaming to millions through apps.  There are mobile gaming systems such as the DSi but those are for people who want games.  Smart phones drew in another group,  people who were not gaming or mobile gaming but now could and did now.  Will the iPad impact video gaming, especially mobile gaming?  The potential is there with the better screen size reducing eye fatigue and frustration of missing a detail that hurts your game play.  The question will return to price and variety of games.  With apps being plentiful the issue may be more price of the iPad than available content.  http://www.modbee.com/business/story/1023644.html#ixzz0dqE1XIVw

 Video is better with a bigger screen.  High definition is not the same on the iPhone screen compared to a bigger screen.  Also the connectivity of the iPad should make it easier to watch videos, especially streaming videos.  There are application for mobile teleconferencing but more people will watch videos than teleconference.  So changes in how people access video many continue.  Nexflix has direct viewing of films and YouTube will be easier to watch while on the move.   The telconferencing eas was anticipated but, as of now, there is no camera for the iPad.  There is also no Flash capability or USB port.  Here is an article that details what is missing from the iPad http://www.guardian.co.uk/technology/blog/2010/jan/28/apple-tablet-computer.  More evidence that our imagination of what the iPad could be does exceed the reality. 

The oddity in all of this is the stock price reaction to the iPad official reveal.  Apple stock prices went down after the announcement.  In early Wednesday trading the share price fell $4.65 or about 2.3% http://www.ktla.com/business/sns-ap-us-tec-apple,0,3176809.story.  Still Apple is well ahead of where share prices began before the iPad buzz.  But we must wonder if the iPad seemed better in our minds than it did in reality?  Yet more disappointment for people wanting to live or visit Pandora.

Questions to Consider

  1.  Was Apple’s publicity build up to the iPad too successful?  Why or why not?
  2. Is it ethical to leak information online to help build interest in a product?  Why or why not?
  3. How did bloggers and the Internet in general help to build interest in the iPad?
  4. How was the iPad build up a type of investor relations?
  5. What is the advantage of Apple making the announcement after the Consumer Electronics Show (CES)?
  6. Why is CES such an important publicity event in the electronics industry?
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One Response to Is Imagination better than Reality? iPad and Apple Stock drop

  1. Dsi Games says:

    rally cool post hope you post more like it

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