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iPad as Apple TV: Why not?

3 September 2010 1,943 views 2 Comments

We have written about how Apple manages Product cannibalization before. There is a terrific business blueprint behind Apple’s Product designs, obviously.

Any new product announcement from Apple raises the following question – “Will it not eat into the market for …”. For instance, people asked that when the iPhone was released – “Will it not eat into the market for iPods?”. They asked that when the iPod Touch was released – “Will it not eat into the market for iPods and the iPhone?” – Now since the iPad has been announced, the same question is being raised – “Will the iPad not eat into iPhone/Macbook sales?”

Apple has been extremely smart about handling product cannibalization issues. From a very simplistic perspective, it boils down to the feature set and the target segment. Now both are related in a funny way. The feature set determines pricing, and pricing determines the target segment. To a large extent, this is true. By taking a really smart approach towards deciding the feature set, Apple has taken care of the whole product cannibalization issue in one shot.

So while for the user, using the iPad as Apple TV would have been a terrific convenience, for Apple, it would have been a terrible business decision.

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  • MaggieB said:

    They are quite adept at giving us just enough so that we keep coming back, and needing, more. Apple is in business for one thing, profit, and while we cannot fault them that, it would be nice if once in a while we didn’t have to jump through hoops to use our devices. For instance, it would be great if we, as end users, could decide if we want to install Flash on our own iPads. It will also be great when iOS 4.2 is available for our iPads, but since I paid approximately 4x the cost of an iPhone for my unit, it would be nice to have it now, not November.

    All that being said, as long as Apple continues to WOW us with their new releases we will continue to line up outside their stores.

  • iPadUseful said:

    I see nothing wrong with it, the only thing is that you constantly have to plug and unplug the iPad on to your TV if you ever want to watch anything. That’s one of the best parts about Apple TV, it’s connected all the time. Movie watching is instantaneous.

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