The Apple iPad

1. The next step in tablet computers The Apple iPad

2. Roger’s (2003) six steps • Much like other innovations, the iPad followed a similar path to Roger’s six steps of innovation: • Recognition of a problem or need • Research • Development • Commercialization • Diffusion/Adoption • Consequences

3. Need • While laptop computer allows users to work in mobile environments, they have issues that innovators looked to solve: • Short battery life • Weight • Portable, but only to a point

4. Research • Apple began work on a tablet-like device called the Newton MessagePad 100. • The iPad was supposed to be launched before the iPhone. Steve Jobs felt the iPad features would work similarly on phones. The phone market was booming, and Apple made considerable market gains.

5. Development • Problems: One concern with Apple’s products is that they do not run Flash, a common computer language found on many software programs and web sites. • Apple has faced scrutiny based on short supply of iPad devices. • Also, the lack of choices in carriers for 3G data has caused consumers to be less than enthusiastic

6. Development • Intended audience: Business leaders, students and teachers, medical practitioners, and consumers interested in portable entertainment. • Large market for applications, especially books for all ages. • More companies are gearing applications to secondary and tertiary environments.

7. Commercialization • The iPads are currently produced in Shenzhen, China by Foxconn. Production will be moving to Brazil by the end of 2011. • iPads comes with only the basic charger accessory, thus increasing profits as customers buy keyboards, cases, protection sheets, etc. • Apple only makes one core model of its products. Unlike customization models from other companies, Apple’s product line is streamlined

8. Commercialization • iPad costs about $260 to make, sells for at least $499. • Marketing is sleek by showing actual images from applications being used. Word of mouth sells iPads as well. • Packaging of the iPad is very clean, similar to the iPad itself. There is little more than a white box, basic instructions, and protection packaging.

9. Diffusion/Adoption • While there is limited research on the effectiveness of iPads in the various areas of society, many visionaries see them as necessary tools. • Nurses use iPads to input patient vital stats while beside, not writing them later. • Students read books on iPads instead of paper copies • Business leaders “FaceTime” to have meetings instead of face-to-face

10. Consequences • While we are still early in diffusion of the iPad, some possible consequences of tablet computers: • Extinction of traditional books, magazines, newspapers. • Textbooks can be updated on demand, not during a 7-10 year adoption period • Laptop purchases decline in favor of the more portable tablets.

11. Timeline of communication • Rogers (2003) presented 5 stages of the innovation-decision process. They include: • Stage 1: Knowledge • Stage 2: Persuasion • Stage 3: Decision • Stage 4: Implementation • Stage 5: Confirmation

12. Stage 1: Knowledge • The iPad was announced on January 27, 2010. It was released to the general public in April. • During this time there was much advertising about the product as well as speculation on how it would be similar to the iPhone and iPod devices. • Educators began to learn about the product as it was shown to the masses.

13. Stage 2: Persuasion • Due to the simplicity of the design, ample applications for free/low prices, individuals have been persuaded to use an iPad instead of laptop or other tablet • Educators see iPads as replacements for bulky textbooks and laptops for students • Electronic textbook companies tout easily updateable content as selling point for iPad

14. Stage 3: Decision • Some schools have provided iPads for all students and have dispensed with traditional textbooks • Our organization has purchased 30 devices, enough for a classroom set. • Based on the use of these devices as educational tools, wider adoption could possibly occur.

15. Stage 4: Implementation • Some educators and schools have fully implemented iPad use. Administrators conduct walkthroughs on the devices, teacher use the device for education and recordkeeping, and students access content while multitasking with the device. • Continual use will show if the device is a truly feasible alternative to traditional classroom technology and textbooks.

16. Stage 5: Confirmation • We have not reached the confirmation stage with the iPad in education. • Since there are still many unknowns, such as availability of all courses’ textbooks, schools are holding off on purchases. • Schools see the benefits of the device, but lack funds due to poor economy. This could also move the iPad into rejection since it might prove too costly.

17. Adopters • Rogers (2003) identified 5 adopter categories: • Innovators • Early Adopters • Early Majority • Late Majority • Laggards

18. Innovators • As Rogers (2003) stated, innovators are venturesome. These innovators also have significant financial resources. • iPads were reasonably priced, however many ‘innovators’ paid premiums to reserve one of the first iPads or purchased on secondary market • Innovators contributed to the first five days of sales of the iPad.

19. Early Adopters • Based on the communication from innovators and advertising from Apple, the early adopters began to purchase iPads. • Rogers (2003) stated these individuals have higher levels of respect from their community. Others listen to them and follow their guidance. • Since early adopters began purchasing the iPads, the rest followed. • Early adopters accounted for the first 3 months of sales for Apple.

20. Early Majority • Rogers (2003) stated the Early Majority are more deliberate in their adoption of innovations. The observe the innovation from a distance and see how early adopters react. • Early adopters still use laptop computers and may not want to give up much of the functionality they offer. • The early majority began to purchase the iPad 8-12 months after introduction.

21. Late Majority • While Rogers (2003) qualified the Late Majority as skeptical, they are still likely to adopt the iPad into their lives. • They are seeing how they can actually replace multiple devices (mp3 player, DVD, computer, etc.) with the iPad tablet. • Since they have limited resources, they might consider the iPad as a way to save money on future devices (see above) • As more content such as entertainment media is available for tablets, they are likely to adopt.)

22. Laggards • There will still be individuals who do not purchase an iPad. Many might lack the financial resources to ever make the purchase. • Rogers (2003) also suggested these individuals may be leery of new technology, due to past experiences. They may not see the need to use the device (e.g. age, job, etc.) • If Laggards do purchase the iPads, it might be the 3rd or 4th generation when it becomes obsolete or replaced by a new innovation.

23. S-shaped curve of adoption Innovators Early Adopters Early Majority Late Majority Laggards

24. Links for sources • http://www.pcworld.com/article/193746/apple_ipad_costs_260_to_build_isuppli_finds.html • http://www.apple.com/ipad/features/ • http://en.wikipedia.org/wiki/IPad

25. Links for iPad sales data • http://www.ipadinsider.com/tag/ipad-sales-figures/ • http://ipod.about.com/od/ipadmodelsandterms/f/ipad-sales-to-date.htm • http://blogs.computerworld.com/18550/apple_2011_ipad_sales_hit_40_million