Wednesday, January 27, 2010

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The iPad Vs. The Kindle: How Should Amazon Respond? Top
Editor’s note : This a guest post written by Joff Redfern. Redfern is the co-founder of FlattenMe.com , a site for creating personalized storybooks. He was formerly a vice president of product at Yahoo, where he managed Yahoo Buzz and Toolbar. Amazon Kindle: The Road Ahead I'm a recent Kindle fan boy. I like the instant access to earth-friendly books, the paper-like display and the way it fits in my hand like a paperback. I've also deeply admired the crispness of the Kindle vision—"any book, any language, in minutes". But with Apple's iPad announcement the playing field on which the Kindle competes shifts and the disruptive technology itself gets disrupted. If I were running the Kindle I would answer this question today: "Are we innovating the publishing or the entertainment industry?" Is the Kindle just for my reading entertainment or is it for watching, listening, gaming, browsing, sharing photos, and communicating with friends & family too? Ultimately the answer is shaped by consumer preference, competitors and time measured in years. As a product guy this is a really intriguing question to try to unravel—which path should Amazon choose? Over time this is what may push the Kindle into being more than just a reader . . . For the same price, more is better Will consumers prefer a multi-purpose entertainment tablet over a single-purpose reading device as their prices converge? This is a religious question; sides will be drawn. I look to the evolution of my own personal technology habits for the answer. When I wanted to manage my contacts I started with a paper-based Address Book, upgraded to a Digital Rolodex, upgraded to a Palm V, upgraded to a Blackberry, then upgraded to an iPhone. Fundamentally I was trying to solve how I manage and communicate with my contacts. With each upgrade I got more functionality yet the price point for each device was not radically different. If consumers can eventually get an entertainment tablet that also has the core features of a great reader (screen, content catalog, ease of purchasing) at under $200 they'll want more. Prices drop. Over time, price won't be a factor in the purchase decision. Today, Kindle enjoys a price advantage over the iPad. It is nearly half the price, starting at $260 versus $500 for the iPad, although the cheapest Kindle DX with an equivalent 9.7 inch screen is $489.  That is pretty close already.  What happens when the price of iPad-like devices trend down to a point of consumer indifference? Moore's Law and business model innovation will drive the iPad-like devices to sub-$200 pricing. Unrealistic? The retail price of the iPhone 8GB dropped ~83% in 3 years from $599 to $99. Also keep in mind that entertainment tablets are using different math from the Kindle. The device pricing will be "subsidized" by multiple revenue streams—downloads of books, music, movies, games, apps, advertising, and more. Today I can get a cell phone device for "free", will my iPad be "free" some day? Competitors are playing a platform war. Is Kindle? Apple, Google and Microsoft have massive investments in their respective mobile platforms. In particular, Apple is king of the mobile mountain. As Jobs declared today, "Apple is now the largest mobile device company in the world". This Apple sizzle has drawn 100,000+ developers and publishers to its iPhone (and now iPad) ecosystem. These apps are already available to entertain us in all sorts of ways on the iPad beyond what Apple exec Scott Forstall showed today. Amazon  knows this. Last week they announced a developer API is coming. So the question remains how robust is the API and will the developer community bite, or is it game over? What would you do if you ran the Kindle? CrunchBase Information Amazon Apple Amazon Kindle Apple Tablet Information provided by CrunchBase
 
Apple Doesn't Own A Single iPad Related Domain Name Top
Perhaps Apple was just being extremely careful not to draw any attention to the widely speculated name of its new multimedia device prior to this morning’s announcement , but one simply cannot overlook the fact that the company doesn’t have ownership over any domain names related to ‘iPad’. For now, that is. Apple does not own iPad.com, as you may have noticed. Others have, in any case, and some even suggest that the person who registered the domain name (one Martine Bejasa) sell it to the Cupertino company to become an instant millionaire . Unlikely to happen, IMHO. But what else doesn’t Apple own? Well, they don’t have control over even a single domain name that has iPad followed by a country or generic TLD. Out of Cupertino’s hands, at least for the time being: iPad.net, iPad.biz, iPad.info, iPad.fr, iPad.de, iPad.es, iPad.eu, iPad.se, iPad.cn, iPad.be and iPad.jp. To name but a few. They also don’t own iBook.com, iBooks.com or iBookstore.com or anything like that, in case you were wondering. It’s not that Apple doesn’t care about domain names. It paid heavily for iPhone.com back in 2007, and it owns iPod.com, iMac.com, iWork.com, iTunes.com etc. (but not MacBook.com, curiously). Run a search on UDRPsearch and you will find that Apple regularly fights to (re)gain control over relevant domain names that carry one of their trademarks – which it doesn’t have for ‘iPad’ (yet), just to be clear. Just a couple of weeks ago, Apple moved to seize 16 domain names from a single individual. There’s no doubt in my mind that they’re going to be aggressively targeting the owners of the domain names listed above, once they secure or license use of the ‘iPad’ trademark.
 
Pictures: The iPad Being Manhandled Top
Okay, we’ve all seen the iPad now. We’ve read all about it . We’ve seen video of it in action. But how is it to actually hold? I took a bunch of pictures of people playing with it in the demo pit today after Apple’s event. The consensus amongst those I talked to? It’s actually quite comfortable. I played with one myself for a bit and have to agree. While it’s nowhere near as light as a Kindle, it feels much more solid and because it’s significantly larger, is easier to hold with two hands. But it’s also light enough that holding it with one hand is not a burden. And it’s extremely thin. Plus, unlike the Kindle, you can easily swap between portrait and landscape positions. As for finger smudges, that’s another story. The Apple reps were quick to wipe it off after each demo as it was quite greasy after each hands-on. But the screen is bright enough that you don’t really notice it except around the black edges. Note the pictures below of it next to the Kindle, as well as it next to an iPhone and an old school iPod.   CrunchBase Information iPad Information provided by CrunchBase
 
iPad To Ship In Europe In March Says Apple Top
Apple’s European PR team have confirmed the impending of arrival inside two months of the Apple iPad to European shores. “The Wi-Fi version will ship worldwide in March,” said an Apple Europe spokesperson, but she added, “Watch this space for Wi-Fi plus 3G.” In other words it’s clear Apple is still in negotiations with mobile carriers over which will stock the new device. Unfortunately there is no word yet on international pricing.
 
Think iBooks Looks Familiar? You're Not The Only One. Top
When Apple was demoing its new iBooks application for the iPad today during their keynote address, I just kept thinking to myself: this simply must have been designed by Delicious Monster , the shop behind the brilliant Mac app Delicious Library. I’m not the only one who thought that either. Delicious Monster founder Wil Shipley thought the same thing. The only problem? His shop didn’t make it. In fact, Shipley was quite vocal on Twitter during the keynote today about the situation. “ No, Apple didn't license iBooks from me. They just copied me. Ah well ,” he wrote . Later, he added , “I guess it's not enough Apple has hired every employee who worked on Delicious Library, they also had to copy my product's look. Flattery? ” While Shipley tries to play it off as not that big of a deal, clearly he’s pretty upset about it. And he should be. I mean, the bookshelf view in iBooks is nearly identical to the main bookshelf view used in Delicious Library. Not only that, but it’s not like this is a little-known app that Apple may have missed: it has won the Apple Design Award twice, and been a runner-up one other time. Apple gives out those awards. Still, as Shipley notes , iBooks is only for eBooks while Delicious Monster is for all types of media, and has much more functionality. But if Apple really did hire much of Shipley’s team then just re-create the look, that’s a little shady. We’ve reached out to Shipley to confirm those hires and will update if we hear back. Back in July, you may recall that Shipley had to kill the Delicious Library iPhone app because of a change to Amazon’s APIs for pulling product data. You may wonder why Apple didn’t just hire Shipley if they poached his whole team? “ They couldn't afford to hire me ,” he writes . CrunchBase Information iPad Information provided by CrunchBase
 
Video: The iPad In Action Top
By now you’ve probably seen the videos on Apple’s site showing the iPad . But those aren’t always indicative of the way it actually works in real life. Luckily, Apple had plenty of iPads in a demo pit area after the event today and we captured some footage of a few applications actually being used. In the video below see Apple’s new Keynote app (built specifically for the iPad), as well as the new iBooks app, in action. As you can see, the device is very fast. Also note the Apple employee talking about using the iPad to make calls.
 
Nearly Half Of Netflix Subscribers Now Watch Streams Online Top
Netflix has just reported its Q4 2009 results, and has performed pretty well as expected , although revenue was slightly below most forecasts. What caught our eye is just how many Netflix customers are now streaming movies and TV shows online. The percentage of subscribers who watched instantly more than 15 minutes of a TV episode or movie in Q4 2009 was 48 percent, compared to 28 percent for the same period of 2008. As for the numbers ( PDF ): Netflix ended the fourth quarter with approximately 12,268,000 total subscribers, a 10 percent jump compared to end of the third quarter of 2009. Net subscriber change in the quarter was an increase of 510,000 for the third quarter of 2009. The company earned $30.9 million, or 56 cents per share, in the fourth quarter of 2009. That compared to $22.7 million, 38 cents per share, in the same period of 2008. Netflix’ Q4 2009 revenue rose 24% to $444.5 million, a 5 percent sequential increase from $423.1 million for the third quarter of 2009. The DVD-rental company was estimated to report revenues of up to $446 million . Netflix expects revenue to climb to $490 million to $496 million this quarter. Full earnings can be consulted in the press release .
 
Everything You Need To Know About The iPad Top
The suspense is over! Today, Apple unveiled its new tablet computer, aptly called the iPad, here in San Francisco. Steve Jobs positions the tablet as a third computing device between a laptop and a smartphone geared towards the "key tasks" of Web browsing, email, sharing photos, watching videos, playing games, and reading digital books. All current iPhone apps will run on the device, as well as new games and digital books designed specifically for it. Here's a list of all our recent coverage from before, during and after the event. Video: The iPad In Action (link) The iPad: our take (link) Apple has a solution for the iPad's missing SD card slot and USB port: adapters (link) Investors Didn't Like The iPad Until They Heard Its $499 Price (link) Apple Teams With AT&T For The iPad's 3G Connection. Ugh. (link) The iPad Comes With iBooks And Will Cost $500 To $830 (link) New iPhone SDK with iPad support coming today, 100% compatibility with iPhone apps (link) Looks Like The Apple iPad Doesn't Have Flash, After All (link) Apple unveils the iPad – at last – and it's $499 (link) Our Live Notes Of The Event (link) The Tablet Could Spur A Media Revolution, But It Will Be Out Of Apple's Hands (link) Who Gets The First Hands On With The Apple Tablet? Maybe Jack Bauer. (link) McGraw-Hill CEO Confirms Apple Tablet Is Coming Tomorrow (link) The First Apple Tablet Commercial? No Way (link) Apple Execs Downright Giddy About The Tablet (For Them Anyway) (link) The Apple Tablet May Come With A Barnes & Noble Bookstore (link) Breaking: Flurry Notices Cupertino-based Users Testing Apps on Apple Tablet (link) Overheard: Steve Jobs Says Apple Tablet "Will Be The Most Important Thing I've Ever Done." (link) CrunchBase Information iPad Information provided by CrunchBase
 
Investors Didn't Like The iPad Until They Heard Its $499 Price Top
The big day finally arrived, and Apple introduced the iPad this morning (yeah, you heard that already). Strangely, during the course of the much-anticipated event, Apple’s stock went down, as observed by many . And then, Apple finally got around to talking about pricing. Chief executive Steve Jobs took the stage, and wowed the crowd (and the world) by saying that the starting price for the iPad was a stunning $499 . Guess what happened next? At the time of this writing, the stock spiked +3.61 . We wouldn’t be surprised to see it hit an all-time high today. More coverage can be found here .
 
Apple Teams With AT&T For The iPad's 3G Connection. Ugh. Top
Today, during the unveiling of the iPad, Apple CEO Steve Jobs announced that you’ll be able to get an iPad that has both Wi-Fi and 3G access, meaning you can download new content from nearly anywhere. That’s great news. The not-so-good? It’s powered by AT&T, which has been absolutely notorious for already being unable to cope with the 3G data usage of the iPhone. This sure isn’t going to help things. However, there are some upsides. For one, this internet access will not be based on a contract — you’ll sign up for the 3G access directly from the device, paying on a monthly basis. You’ll have two options for dataplans: a not-too-impressive 250 Megabytes for $15.00, or Unlimited downloads for $29.99 (though that will almost certainly have an unwritten cap as well). And you’ll be able to use AT&T’s Wi-Fi hotspots, free of charge. You’ll also be able to use these internationally — iPad 3G models will be unlocked, and will included GSM micro SIMS. It’s worth pointing out that most of what you’ll be doing with the iPad will consist of consuming content and surfing the web. Unlike the iPhone, where a dropped connection can result in cutting off an important phone call, a lost data connection on the iPad will probably just mean your website stops loading halfway. That said, the increased strain could make things even worse for iPhone users. Also note that while the iPad starts at $499, 3G models cost an extra $130, so the cheapest you’ll get is $629 for a 16GB model. More coverage can be found here .
 
The iPad Comes With iBooks And Will Cost $500 To $830 Top
Steve Jobs revealed the Apple iPad today, its much-awaited tablet computer (see our live notes ). Jobs positions it as a third computing device between a laptop and a smartphone geared towards the “key tasks” of Web browsing, email, sharing photos, watching videos, playing games, and reading digital books. All current iPhone apps will run on the device, as well as new games and digital books designed specifically for it. An enhanced iPhone SDK released today will support both the iPhone and the iPad. Some specs : The device has a 9.7 inch display, weighs 1.5 pounds, and is half-an-inch thick. It is powered by new chip made by Apple itself, a 1 GHz A4 and will come with 16Gb to 64 GB of storage. It supports WiFi, has an accelerometer, compass, and built-in speaker and microphone, just like the iPhone. The screen is a full capacitive multi-touch screen. Battery life is supposed to be 10 hours. In addition to WiFi, it will have a 3G option from AT&T. The Wifi-only version, with 16GB of memory, will cost $499. A 32GB version will be $599, 64 GB will be $699, and with 3G from AT&T it will cost $829 (for the 64GB version). AT&T will offer two data plans: $14.99a month for 250 MB of data or $29.99 for unlimited. All the 3G iPads, however, will be unlocked, meaning they can be used on other carriers as well. On-stage, Apple highlighted the iPad’s use as a digital reader. The iPad comes with a new app called iBooks and an iBooks store . Apple partnered with five publishers to make books available for sale through the iBooks store. “Amazon has done a great job of pioneering this technology,”says Jobs referring to the Kindle. “We’re gonna stand on their shoulders and go farther.” The iBooks support the ePub format, allows readers to flip through pages and supports pictures, video, and other graphics. The first book available will cost $14.99. It is clear one of the main functions of the iPad will be as a reading device. Martin Nisenholtz from the New York Times showed its own app onstage for the iPad, which looks like a larger, lusher version of the one which is now available on the iPhone. “This is the next version of digital journalism,” declares Nisenholtz. We’ll see. More coverage can be found here .
 
Looks Like The Apple iPad Doesn't Have Flash, After All Top
We’re in the middle of Apple’s special event , where Steve Jobs is showing off the much-anticipated iPad for the first time (yes, that name is now official). And judging by one photo captured during the presentation, it looks like the device won’t support Flash. As Jobs showed off the iPad’s browsing capabilities, Engadget captured a photo of the tell-tale blue missing plugin icon that shows up when you try viewing a Flash element without the plugin installed. Whether or not the Tablet would support has been a topic of extensive debate . The iPhone has never supported Flash, and Apple has never done anything to indicate that it would be coming out any time in the near future (in fact, their strategy appears to involve moving away from the ubiquitous plugin).  With that in mind, the iPad’s lack of Flash support comes as no surprise. But the device features browsing as a key element, and there are going to be plenty of people trying to access their casual Flash games and Flash-based video sites, only to be met with that frustrating icon. It’s still possible that the Tablet could support a limited version of Flash that simply didn’t support that piece of content on the New York Times website, but I wouldn’t get my hopes up. We’ll update this post if Jobs says anything more about Flash support during the presentation. More coverage can be found here .
 
Live From The Apple Tablet Event Top
We’re here in San Francisco for Apple’s event today where they’re expected to unveil their new tablet computer which may or may not be known as the iPad, iSlate, iBook, iTablet, the Apple Tablet or some other variation. The event starts at 10 AM PT. More coverage can be found here . Below find our live blog:   CrunchBase Information Apple Tablet Apple Information provided by CrunchBase
 

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