NEWS ANALYSIS: Apple's New iPad might be a hot buy for early adopters, but for many consumers and potential business buyers, it might be one tablet they pass over.
Apple's
new iPad is scheduled to hit store shelves on March 16. And when it does,
you can expect the device to be a hot seller across the world as pent-up demand
for the latest and greatest Apple tablet reaches a tipping point. Chances are,
lines will be extending around Apple stores, and there will be a short supply
just hours after the device hits store shelves.
But what will happen after the early
adopters and dedicated Apple fans get out of the way? Will the average
mainstream consumer or potential enterprise buyer jump to buy Apple's new iPad?
Will they, too, be in line, waiting to get their hands on the device the first
day it's available?
Unfortunately for Apple, they might
not. Sure, there will be millions of iPads sold this quarter and next, and
there's a good chance the device will eventually set sales records. But there
are also several compelling reasons today's consumers might balk at picking up
the new iPad. Despite its new A5X processor and Retina Display, the new iPad
has some flaws many consumers won't want to look past.
1.
They have an iPad 2
For consumers who own an iPad 2,
getting the new iPad might not make much sense. The device comes with a better
display and 4G LTE, but other than a few other minor improvements, it's
basically the same device they own. The new iPad is great and all, but spending
another $500 or more on a device that's basically the same thing you own is not
always a worthwhile purchase.
2.
The LTE pricing is expensive
For those who want to get in on the 4G
LTE craze, buying the new iPad is cost prohibitive.
Each
version of the LTE-equipped iPad is $130 more expensive than its WiFi-only
alternative. And don't forget to add to that price the cost of LTE
services, which can range from $15 on up to $50 a month.
3.
Where are all the improvements?
As noted, Apple's new iPad comes with
only a few major improvements. Consumers who had been listening to the rumors
were hoping to find something far more revolutionary. Those folks don't like
being disappointed. And they especially don't like spending money on nominal
upgrades.
4.
Does the name mean the real iPad 3 is coming?
Apple's
decision to call its latest release the "new iPad" is telling. It
could mean that the company is trying to change its branding, but it might also
mean that the
real iPad 3 will be
launching eventually. For consumers who believe in the latter, waiting to see
if Apple follows through on that promise might be a good idea.