Thursday, April 1, 2010

Apple's iPad Positioning

With all of the hype and hoopla of Apple's upcoming iPad launch, I think it is timely to discuss its positioning in the market.  I am as excited as any gadget-lover to get my hands on one of these devices and see what it can do.  However, as a consumer, I can't help to wonder, "How am I supposed to perceive this new technical masterpiece Apple is pioneering?"

In the presentation Apple CEO Steve Jobs gave introducing the new product, he showed the iPad "positioned" between the iPhone/iPod Touch and the MacBook.  In doing this, Jobs is positioning the iPad based on form factor--it's bigger than a smart phone, but smaller than a laptop computer.  However, that may or may not be a valued position in the market.  To determine if it is, we need to look inside the mind of the customer.

A valued position is one that emphasizes jobs and/or desired outcomes that are important to the customer, that can be satisfied in a superior and sustainable manner by the company, and that provide a clear and credible point of distinction to customers.

What set of jobs will the iPad help people do or do better?  One answer to this question was proposed by Walt Mossberg in the WSJ.  Mossberg states, "If you're mainly a Web surfer, note-taker, social-networker and emailer, and a consumer of photos, videos, books, periodicals and music—this could be for you.  If you need to create or edit giant spreadsheets or long documents, or you have elaborate systems for organizing email, or need to perform video chats, the iPad isn't going to cut it as your go-to device."

Based on this article, Mossberg is making the statement that the iPad helps you get a set of jobs done around consuming content and not around creating content.  Apple appears to be thinking in a similar manner given that their launch ad displayed on their website shows someone consuming content. 

Let's get back to the devices Steve Jobs used to position the iPad in his presentation.  From a jobs-to-be-done perspective, a computer helps you both create and consume content while a smart phone helps you consume content and stay connected while being mobile.  Given the success of computers and smart phones in the market, we know that these sets of jobs are important to customers.  However, in positioning the iPad, is it sufficient to simply be the device that enables you to consume content?  Will that be compelling enough to mainstream consumers to purchase another device and drive Apple's sales?  The answer, of course, depends on whether or not it is perceived to be clearly superior to computers and smart phones for content consumption and distinct enough in the minds of customers as a go-to device while being on-the-go.  If not, Apple may need to rethink the iPad's positioning.

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