Sticker Shock Now or Buyer’s Remorse Later? OR “No, That’s Not Just a Cheaper iPad”

It’s that gift-giving time of year and in the spirit of the season I will share rule number one in our house: don’t buy the ApplEvangelist anything technology related unless it comes from Apple and with a receipt. Other technology items must be pre-approved and cash is always the best option. Is the ApplEvangelist a little bit Grinchy? Not at all. I prefer to think of it as being very practical. There isn’t enough time in the day or space in my house for devices that don’t get used. Before technology passes through these doors it is thoroughly scrutinized for its own merits along with how it will fit into the existing workflow.

Typically, when evaluating an addition to the ApplEvangelist ecosystem, the price tag gets covered up. It’s about how it works, not how much it costs. Ideally, the same process would be considered when anyone makes a technology purchase for themselves or a loved one. But these are the Holidays and there are a lot of cheap gadgets on store shelves. It’s easy to see how, for a relatively small amount of money, someone could make a big splash by purchasing something like a tablet for a friend, family member, or themselves. The race to the bottom has resulted in upwards of a hundred different tablets from which to choose. All of the major players are involved including Amazon, Google, and even Apple. So you’re safe in choosing the cheapest option, right?

Wrong. Seeing as this is an Apple blog I won’t pontificate (again) on the merits of the more expensive Apple products. At least not for long. There are already numerous posts on this site extolling the virtues of an Apple iPad over more affordable options. No, this time we’ll consult real world data. It’s one thing to read over and again why an iPad is superior. It’s another to see how people who have already purchased tablets are using them.

That’s where the disconnect exists. Over the last year, Apple’s competition has been pumping out cheaper and cheaper options in an attempt to secure a slice of the tablet market for themselves. And it’s worked. Apple’s market share has continually eroded since once controlling 90% of the market. Now, according to market researchers, Apple only controls roughly 57% of the tablet market. This must mean there are a lot of great tablets being used though out the US that are not from Apple.

Not so fast. According to internet metrics, roughly 91% of all tablet web traffic originates from iPads. That means of all the non-Apple tablets purchased, only 20% are actually being used. To put it another way, of every 100 tablets sold, 43 of them are non-Apple devices. Of those 43, only 9 are being used to surf the web.

In the famous words of Jerry Seinfeld, “What is the deal?” What are people doing with these inexpensive
tablets? They are not shopping or downloading apps or books. They are not surfing the web or using them to video chat. It is clear that once these tablets make it home, they are not proving to be very useful. Are these really viable tablets at an inexpensive price or merely really expensive paperweights? And is it worth the cheaper price if you or your giftee rarely uses it?

Tim Cook said it best when asked about the stigma of premium pricing on Apple products:

Price is rarely the most important thing. A cheap product might sell some units. Somebody buys it and they feel great when they pay the money, but then they get it home and use it and the joy is gone.

Are Apple tablets almost $100 more than competing devices in the same class? Yes. Is it worth it to pay a little more for a useful device or a little less for a glorified doorstop? Will you bite the bullet and ignore the sticker shock for a few minutes, or risk getting a cheap tablet home and be stuck with buyer’s remorse for months to come?

DECEMBER 2013 UPDATE

Something rarely acknowledged in tablet purchasing decisions is the incredible amount of “added value” that comes with an Apple device.

Specifically, in regard to iOS devices like the iPad, Apple includes, at no extra charge, access to their entire productivity and creativity suites. Pages, Keynote, Numbers, iMovie, Garageband, and iPhoto. These apps turn your iPad into an incredible tool for creation on par with most full-fledged laptops or desktop computers (easier and better in many cases).

The less tangible value add is found at your local Apple Store. At this point, most people in the US are no further than 50-75 miles from an Apple retail location (usually closer). An iPad owner is virtually guaranteed to get any issue resolved by visiting an Apple Store. This “feature” is almost immeasurable in regard to monetary value. Through our own personal experiences, it has literally saved us thousands of dollars. In some cases entire devices were replaced for very small issues. Other situations would have rendered another manufacturer’s tablet useless (and a waste of money, regardless of how cheap). Yet, in every instance, our iPads were replaced at no cost.

Other add-ons included in the slightly higher Apple price is an enormous ecosystem of apps (almost half a million iPad specific apps), theft and loss protection, data recovery and syncing, software security and compatibility, and completely cost free updates to the operating system (even the 4 year old original iPad still receives the latest software improvements).

Without a doubt, the big box retailers like Best Buy and Walmart will try to sell you a “more affordable” tablet. But while the cost savings now is enticing, the risk of your purchase being rendered useless should weigh heavy.

Would you prefer paying $400 for a powerful tool you will use for years or $250 for what may soon be a pretty paperweight?

A Big (little?) Week for Apple

In the early part of this century, Apple introduced one of the most sought after devices of all time: the iPod. It was a runaway success to the point where the word iPod became synonymous with all portable music players. After its introduction other manufacturers did what they could to differentiate their products from Apple’s. Their solution was to undercut the iPod on size and price; a noble effort completely snuffed out when Apple diversified its iPod lineup with varying sizes and entry level price points for the cost concerned consumer.

Fast forward to 2010, Apple launched another blockbuster product that created and defined a market. Two years later and the average consumer sees any tablet in the wild and immediately assumes its an iPad. Truth be told 1 out of every 5 tablet sold to consumers is most likely a Kindle Fire or Google Nexus 7. Once again other manufacturers have sought to gain traction in the tablet market by differentiating their device by size (smaller) and cost (cheaper). And once again Apple has made plans to put out that fire (pun intended).

The much rumored iPad Mini (iPad Air?) should be announced by Apple this Tuesday. The press invite states “We’ve got a little more to show you.” As is usually the case in an Apple invite, the wording gives it away: Apple is set to introduce a smaller, lighter, thinner iPad. Make no mistake, Apple will introduce a fantastic device. It is likely to be thinner, lighter, and more functional than any current “smaller” tablets on the market. It will also run iPad software and not glorified phone software, making it far more usable than other tablets and giving it access to the almost 300,000 iPad specific apps in the Apple ecosystem.

But is that enough?

If we know anything at all about average consumers, they may appreciate quality but not nearly as much as they appreciate cost. Google and Amazon have been so desperate to steal market share away from Apple’s iPad that they’ve priced their tablets aggressively, to the point that they are actually losing money on them. That is absolutely the antithesis of everything Apple believes. They make great products…and great profits. So can Apple meet them on price and still make money? Doubtful. Apple won’t hit $199 like their competitors. It’s unlikely they will even go as low as $249. But they could still sell insane numbers of these at $299. Unfortunately for Apple, the press is so fixated on price that they will likely be panned and, ridiculed if the starting price for this new iPad is anything over that $299 price tag, no matter how nice it is.

That is unless there’s something more to the story. Could Apple add some sort of new functionality to this new iPad that makes it demonstrably better than other small tablets? Revolutionized TV remote functionality? Insane thinness? Bluetooth or WifiDirect sharing to other screens/devices? Apple has played it fairly safe lately. Here’s hoping they have something mind blowing to show off on Tuesday.

But maybe Apple really does have a “little more” to show us.

If rumors and leaks are to be believed (and more and more they’ve become more accurate), some other products are getting updates, as well. And the “little” theme still applies.

The success of the 15″ Retina MacbookPro has helped pave the way for a 13″ Retina MacbookPro. This thinner and lighter notebook will be the industry leader in the category. A premium price will no doubt tag along, but the machine will represent a premium upgrade over the current 13″ offerings.

The MacMini will most likely get an upgrade, too. The smallest of Apple’s desktop computers, this affordably priced Mac might only see a spec bump to the latest processors, USB 3.0, and Thunderbolt compatibility.

Perhaps the most anticipated upgrade is that which is rumored to come to the iMac. It has been more than 500 days since the iMac saw any sort of upgrade. It is definitely due for a spec bump like the MacMini but might also come with a full redesign. Losing the optical drive could allow the most successful all-in-one computer in the world to become even thinner and more powerful (utilizing the cost savings for solid state storage options).

Wishful Thinking Warning

If we had our druthers here at ApplEvangelist, they would take the MacMini or iMac a step further and introduce a whole home solution of some type. Our mobile computing has become dominated more and more by appliance-like devices. iPhone and iPads represent the majority of mobile web usage. Third party accessory keyboards, etc have helped make them viable productivity options, as well. The role of our home computer has changed significantly. No longer do we find ourselves chained behind the bulky tower and monitor after school or work. They have become more of a hub; the place where the bulk of our media is stored and the place where we back up our other devices. Maybe it’s time for our home computers to evolve.

What’s stopping Apple from combining the functionality of an AppleTV, AirPort Extreme or Time Capsule, and iMac into one device? A computer that sits in a closet somewhere and pushes TV and computer content to dumb screens throughout our house? Dumb screens being the 52″ living room panel or the 24″ panel in the office and even the small screen in the kitchen or bedroom. It could function as a server to push out movies, music, photos, etc. to our mobile devices and control what we see on the TV at the same time. It could even use wifi and Bluetooth to control the next generation of light bulbs in our house.

The technology exists. And Apple is just the company to put it all together and make it “just work.”

An Apple a Year Kicks the Competition to the Rear

The old adage professes “An apple a day keeps the doctor away.” I’ve often manipulated this statement to mean using an Apple product every day will keep your stress level down as it relates to technology. But thats another post. Other computer manufacturers have interpreted it another way and have unknowingly reinforced a key pillar in Apple’s product strategy.

Please know that not a single one of the numbers I’m about to state are in any way official. Completely unscientific at best.

A quick survey of two manufacturers’ websites highlights the veritable deluge of products consumers have to wade through to make a purchase. Currently on Lenovo’s website there are 14 different subsets of laptops. Multiply that out by an average of three different screen sizes each and you have 42 laptops. Similarly, Samsung offers roughly 23 laptops with varying differences in color or other small changes within a large portion of those (precisely 54 listings on Samsung’s site). And that does not include Chromebooks.

The current tablet market shows similar trends. Samsung and Lenovo have 6 different tablets models. Within each of those, a consumer must decide between normal specifications of 3G, LTE, capacity, color, etc., as well. This doesn’t include other tablet makers such as Acer, Asus, Dell, RIM, and Pantech. That’s a lot to decipher just to get a tablet running Gooogle’s Android OS which, until the last iteration, wasn’t actually intended for use on anything but phones.

“What about mobile phones?” I’m glad you asked. According to Google’s own numbers, there are currently 85 different phones that run Android. 85. Yes that’s a lot of choice. Consumers like choice. But consumers like simplicity more.

It seems not a day goes by when there isn’t another Android smartphone or Windows laptop released. At the Consumer Electronics Show last week, Intel announced that there will be over 75 ultrabooks (MacBook Air clones) released in 2012 alone. And while all these devices aren’t coming from one manufacturer, there are fewer than you think. A vast majority of these hundreds of laptops, smartphones, and tablets are coming from Lenovo, Asus, Acer, Samsung, Dell, HTC, Motorola, and Toshiba. This means lots of choices for consumers but not without cost. Not in terms of price, necessarily, but in quality. So many different models and competition from other manufacturers means companies spend little time perfecting a product before its release. Too little man power and resources to innovate with each new iteration. And increasing competition means compromising on components and build quality to meet a price point.

Compare this to Apple and it becomes obvious why it is the only manufacturer gaining any significant market share year over year. Apple sells two different laptop lines; the MacBook Air and the MacBook Pro. Two different screen sizes for the former and three for the latter. Five standard models total (user customizable if desired). There are two screen sizes of iMac; each comes in a standard model that is also customizable. Apple still offers the MacPro desktop machine but may soon do away with it as it no longer offers a considerable upgrade to the iMac units. There is one iPad. Yes there are choices for color (2), capacity (3), and connectivity (2), but when someone says they want an iPad, there are very few decisions to make. In regard to the modern smartphone, Apple invented the category and in five years has released five phones. Essentially this is Apple’s entire product line. It’s easy to navigate and differentiate for consumers. But that is only part of the reason for its success.

This limited product line is updated, at most, twice a year. Most products receive an annual refresh or redesign. One iPhone per year. One iPad. At most, 2 specification upgrades for MacBook Pros and iMacs. This allows Apple designers and engineers to focus all their energy on making each product amazing. A smaller product lineup also allows Apple to continue to offer support at a high level for all it’s devices. It’s a level of focus that few companies can boast.

A new laptop, tablet, or smartphone a day does not keep the doctor away. It creates confusion and apathy and makes it hard to get excited about any new release. It leads to derivative products that are obsolete days after they’re released and makes it virtually impossible to get adequate support when something inevitably goes wrong.

An Apple a year continues to kick the competition to the rear.