The iPad is here... but do you care?

The iPad is here! The new, sexy device from Apple has now been out for about 2 weeks and after months of geeky anxiety, does anyone really care?

The iPad, which is essentially an oversized iPod with some extra functionality, was the topic of choice for geeks for several months with loads of speculation, true (and false) leaks and multiple rumoured names.

More functional than an mp3 player but not as functional as a laptop, the iPad does have many great uses. It will rock as an e-reader with rich multimedia content built-in to certain publications. It could be a great medical device. It also acts as a personal entertainment device that's friendlier for viewing than an iPod and still pretty portable.

The price is still in question, since it does come in a 3G version that will require a hefty data contract over and above the purchase price, which starts at $499 USD. Some analysts expect the total cost of the iPad to reach $2,000 USD in the first two years if you factor in a data plan. This also doesn't consider the siginificant price differences between US and Canadian carrier rates.

Electronics power-site RETREVO did some research pre-and-post iPad launch to see what people thought of it. The results aren't looking that hot:

While the number of people who said they would like to buy one did jump from 3 to 9%, almost half of those who were aware of the iPad pre-launch (and were not interested in buying one) jumped from 26% to 52% that were not interested in buying post-launch.

I personally don't see a need for an iPad, as I already have an iPod and a MacBook, but I'm excited to see where Apple takes their new device.

I think most people will wait-and-see what the iPad can offer them. There's been a lot of hype for this device to revolutionize portable computing and the PC makers are already launching copy-cats.

I don't expect the iPad to have the same impact as the iPod, but Apple has been known to change consumer thinking and time will certainly tell.

Can the Microsoft Store last?

Yesterday, Microsoft opened its first retail store in Scottsdale, AZ. The grand opening seemed to be pretty successful with an estimated 500+ guests lining up for a first glance at what many have dubbed a "rip off of the Apple store".

While a huge grand opening is nothing to scoff at, I have to wonder if Microsoft can pull it off in the long-run.

Let me start by saying, I'm still a Windows guy. I work from an HP desktop running *cough* Vista and am anxiously awaiting my Windows 7 upgrade disc.

Let's start by looking at Apple. When I first started working in the CE industry, Apple held a measly 3% of market share in Canada. Less than 5 years later they had broken into double digits and continue to see an upward trend.

Though many attribute Apple's growth in the PC space to the iPod, there are a few other things that Apple did right. First off, they made their products simple and stylish. They backed the appearance with an easy to use, stable operating system. They topped this off with clever ad campaign but even more-so they educated the consumer.

Apple's retail success has been based on 2 key factors - education and connectivity. Apple makes their own hardware and software so everything is truly integrated. Yes, they force you to work within their walls, but the end result is a simplified and secured computing environment where things just work.

By setting up the genius bar and allowing people to explore the Apple OS, talk to true product experts and make an appointment for one-on-one support, Apple has made the experience so user friendly that it's no wonder people want their products.

Microsoft launched their retail store at a good time - to coincide with the launch of Windows 7, which has a lot to live up to. Consumers were pretty unimpressed with Vista (anyone remember Windows ME?) and giving them the chance to really get a feel for what Windows 7 can do will help revive consumer confidence.

What worries me the most about the Microsoft store is the disconnect between hardware and software manufacturers. The MS store is featuring products by both Dell and HP, which makes a great deal of sense, but what about other partners like Toshiba, Sony and Acer?

While Windows 7 does make connectivity super-easy between multiple computers, printers, xbox 360 and other devices, there are so many peripheral makers and so many add-on software tools from so many developers that it's no wonder a few poor download choices and your system starts to slow down and get errors.

Microsoft has tried retail partnerships in the past and they've never worked out. While I think showcasing the power behind their OS and how you can connect your home is a great idea, I can't help but think that a store-within-a-store concept might have been a better way to go.

That said, Microsoft has a lot to show off - everything from computing (Windows) to search (Bing) to gaming (xbox) to entertainment (Zune) and you need lots of space, lots of product and lots of staff - which means a retail store is necessary.

New stores are set to open in the coming months and I'd love to see how this pans out for them. The success will be based on innovatice product offerings that drive people in and the overall customer experience. This should be an interesting endeavor to watch.

The Digital Album - CMX vs. Cocktail

Despite a crazy battle loaded with political drama (among other things), it would appear that digital music has finally come to be accepted and loved. Nothing proved this point greater than Apple's iTunes store being declared the number one music retailer in the world, beating out Wal-Mart in April of 2008.

The one major downfall to digital music from a sales perspective, is that while single tracks continue to sell well, full album sales are down significantly. To help combat this, the "big 4" - EMI, Sony, Univeral and Warner - apparently banded together to propose a digital album format that would include liner notes, lyrics and art work.

The concept was presented to Apple some 18-months ago and allegedly rejected.

Recently, word got out that the Big-4 went ahead to develop their own format, supposedly called CMX. CMX would play independent of iTunes and include everything mentioned above plus video. The news indicates that the format will be soft-launched in November on a trial basis.

Here's where it gets interesting: Despite reports that Apple initially scoffed at the idea of CMX, they recently announced their own digital album format called Cocktail, which is slated to launch in September.

Is this Apple responding to a threat? Can the record labels sell enough music independently to make up for lost revenues on CD sales? Will consumers be receptive to a digital album? (I mean let's face it - everything that made albums worth collecting died along with vinyl).

On one hand, I'm happy to see the labels finally embracing the digital format. On the other, I see two potential issues with this CMX / Cocktail battle:

1) I'm not convinced that consumers who embrace digital music will be receptive to a digital album - particularly CMX if it doesn't play in iTunes.

2) I'm wondering what will happen if Apple and the labels go head-to-head in yet another format war.

You can read more about the two formats in this TIMES ONLINE UK article.