Wednesday, January 27, 2010

Introducing the iPad (it's not what you think it is)

Earlier today, Steve Jobs officially announced the iPad, a tablet device that looks like an iPhone with a large 9.7 inch screen. For pessimists, the iPad is just an amped up version of an iTouch that falls short of true laptop capabilities (like running multiple programs at the same time). For optimists, the iPad will revolutionalize the publishing industry in the same way that the iPod revolutionalized the music industry (introducing iBooks, the literary equivalent of iTunes).

What do I think?
  1. Bad name!
    I'm not the first one to mention this, but there must be a substantial dearth of female engineers at Apple. Despite Apple's great branding efforts in the past, the choice of iPad as the product name (as opposed to iSlate or any more female-friendly options) really shows a lack of customer research. As a female CNBC anchor mentioned: I don't like it...it reminds me of feminine products!"

  2. Slow Rate of Adoption
    The iPad doesn't appear to represent the technology leap or experience improvement that would encourage the level of immediate mass adoption which drove the iPhone's dramatic success. In addition, the price point ($499 to $829) is substantially higher than a subsidized iPhone. In all likelihood, consumers who have been on the fence about buying a second computer, such as a netbook, will probably be among those to purchase one first.

  3. e-Reading Gamechanger?
    I believe that the iPad will emerge as a dominant e-Book option for those who haven't committed to a Kindle. With numerous apps to download, plus video, iTunes & true web capability, the iPad provides substantially more utility than an e-Reader. And unlike the music industry, the publishing industry is excited to provide digital content, with 5 of the 6 major publishing houses already onboard for iBooks. The problem: the unmet need of quality e-Book reading has been already solved.
In the end, Steve Jobs reminds me of James Cameron. Both gentleman seem to defy the odds and tremendous amounts of schadenfreude to produce truly impressive masterpieces. And if Cameron can generate an unprecedented level of success with Avatar, a movie that many critics and the public ridiculed before its release, then perhaps Jobs can transform book publishing too.

Sunday, January 24, 2010

Google Nexus One: Big innovation or big bust?

Like many people, I’ve been closely monitoring the buzz around Google Nexus One (or the Google phone), which was released on January 5th. As an innovation consultant, I am excited about what Google is trying to do in the cell phone space. As a technology enthusiast, I like to see the “new new”. And as a Verizon phone user, I’ve been waiting for a good, non-Blackberry phone for a long time.

A few weeks after the release, here is what’s apparent about the good and the not so good with the Nexus One:

The Good

1) Great hardware/software solution
To make the best integrated solution possible, Google worked with HTC to produce a custom device. As a result, the Nexus One has a more attractive form factor than the Motorola Droid, as well as seamless inclusion of Google software, like Google Maps and Gmail.

2) Unique direct sales model
Unlike other phones, Nexus One can only be purchased on Google’s website. The wireless carriers (e.g. T-Mobile, Verizon) and the location of their brick & mortar stores are no longer a consideration in your phone purchase.

3) Transformative business model
Adding more salt to the wound, the Nexus One can be bought unlocked for $529. Whereas the wireless carriers want to lock consumers into their service by buying their subsidized phones, Google is seeking to break the device/carrier contract paradigm and give people true freedom of choice.

Imagine a world where you can own amazing phone service, without any limitation in phone options, and never sign up for a two year phone contract again…dare we say, Google is creating cell phone Nirvana?

The Not So Good

1) Bad customer service
With a normal cell phone, a customer can just call the wireless carrier or go to a store if something happens. But this is not an option for Nexus One. And with some early adopters facing spotty service coverage and defective screens—without a live service rep to speak with—the Nexus One has produced many service complaints.

2) Early termination fee
Just like the wireless carriers, Google also charges an early termination fee of $350. Although the fee has a softer name (Google prefers “equipment recovery fee”), there is no doubt that Google is pursuing the same tactics as their wireless coopetitors. Et tu, brute?

3) Not really new
Although “freedom of choice” is as American an ideal as apple pie, the practical reality is that Europeans already buy their phones unlocked. Consequently, Google’s business model play is not as novel as rumors had suggested (e.g. free phone in exchange for ads).

Will "great hardware + great software + grand ambitions = bad customer experience" result in the death knell of the Google phone? The verdict is still out. Undoubtedly, the folks at Google will do some quick fixes on the customer service front before their release for Verizon. But the reality hasn’t matched the hype so far, and Apple has some big news planned this week.