No Price War in iPad mini Debut: Amazon to Benefit

by Holly Shoemaker

As expected, Apple unveiled the iPad mini today, and with a degree of arrogance, Apple showed it had no intentions of entering into a pricing tablet war.

iPad mini Details at a Glance

• The screen is about two-thirds the size of the iPad at 7.9 inches and half the weight.
• Apple priced the iPad mini at $329, a price point that lies between the iPod Touch at $299 and the iPad 2 at $399.
• The device has two cameras, one on the front and another on the back.

Consumers may begin ordering the iPad mini on Friday, October 26, 2012.

Surprise Announcement

In another move that has already started to infuriate users, Apple made a change to its full-sized iPad, which comes only six months after its launch. It announced a new chip, called the A6X that delivers twice the CPU and graphics performance of the A5X, the processor that came out in earlier this year. The next iPad launch was not expected until March 2013. It appears that Apple wanted to steal some of Microsoft’s thunder this week as the new Surface will launch. Consumer may also order the new and improved iPad on Friday.

Concluding Thoughts 

Apple’s move seems confusing from a consumer standpoint. It had the opportunity to up the tablet war. However, Apple’s pricing keeps in line with its thinking – that consumers will pay more for an Apple product, and that the company cares more about profiting from sales of the device, rather than accessories and apps.

Apple’s arrogance could result in a win for Amazon whose expanding Kindle line has tablets and e-readers at price points that should appeal to most consumers. Apple’s stock fell after the announcement while Amazon’s shares rose 53 percent.

Plea to Apple: No Need to Become Less Secretive

by Holly Shoemaker

I recently read a special on cnn.com regarding how Apple should become a more open company. The article argued that Apple is more transparent than people think because it has to hold itself accountable to customers, employees and shareholders. That point is not a unique argument to companies. All of them, to some degree, need to divulge certain information, with public companies having a higher burden of course.

The article also argued that as Apple continues to grow, it will by default become less secretive. Apple has already grown throughout the years, and the company maintains that secrecy helps the company’s product development. With stock hitting record highs after the iPhone 5 launch and the Court upholding its patents, Apple does not need to become more open. In addition, the article discussed how Research in Motion (RIM) had to make itself more accessible to the public. RIM had no choice as it continues to suffer from not releasing the BlackBerry 10 update.

There are two areas that Apple will have to continue to work on: gaining customers trust back on Apple Maps and ensuring that it holds true to its word on improving working conditions in Chinese factories. That may take a little more time as Foxconn continues to gain bad press.

Concluding Thoughts

Consumers know that one way Apple retains its position in the marketplace is through secrecy. It also keeps its staff members to upholding those standards. Despite Apple coming across insincere at times, it has a formula that works and loyalists will remain true to the brand. Apple will continue to sell products because of its name.

Google will always remain more open and it should stay that way. Open-source technology differentiates the companies and assists consumers with choice. Besides, with Microsoft saying it may become more like Apple that is enough for now.

Plea to Microsoft: Do Not Become More Like Apple

by Holly Shoemaker

Microsoft will continue to make news with its upcoming release of Windows 8. Last week, Steve Ballmer, the company’s CEO, said he could envision the company becoming more like Apple. In his annual letter to shareholders, Ballmer said the company may decide to build its own smartphones to complement the upcoming Surface, the company’s first tablet. 

Concluding Thoughts

While I understand the need to compete, consumers do not need another Apple, and Microsoft will need to analyze how its current partnership with Nokia affects it standing in the smartphone market. It will also need to see how successful Windows 8 is with consumers.

I still maintain Microsoft will better position itself by filling the market gap left by Research In Motion (RIM). Despite its intentions to relate more to individual consumers, gaining strength on the business-to-business (B2B) side has strategic merit as we see with Nokia and its map app platform. With Windows 8 approaching, Microsoft should think more about the opportunity to promote its new Windows Phone and the Surface, but on a B2B scale.

Nokia's B2B Focus Takes Map App War in New Direction

by Holly Shoemaker

Nokia’s recent announcement that it will continue to leverage its maps and locations platform by licensing its technology to Oracle will help Nokia build a niche with business-to-business (B2B) customers. It could also assist the company with its financial and perception problems in the smartphone industry.

Nokia Reaches B2B Clients

Opus Research reported that mobile advertisements associated with maps or locations made up approximately 25 percent of the $2.5 billion spent on ads in 2012, with the figure expected to grow as mapping technology does.

While Nokia formed a deal with Groupon in August, the company’s map offerings to large corporations holds a distinct advantage over Apple and Google, companies that focus more reaching individual consumers. Currently, more than 110 countries use Nokia’s turn-by-turn directions compared to 56 countries for Apple and 39 countries for Google Maps.

By partnering with a large company like Oracle, Nokia shows what its Location Platform offers to corporations. Oracle gains the ability to combine Nokia’s mapping capabilities with its own software. Nokia also retains a good position because it owns, builds and distributes its mapping content. Furthermore, Nokia does not require a data connection to run its location-based applications.

Concluding Thoughts

This is a good strategic move for Nokia, and the company makes the most out of its acquisition on Navteq, which it acquired in 2007. To date, Nokia’s location and commerce unit makes up four percent of its revenue. As the company continues to enter into agreements with large Internet companies, Nokia escalates the map app war in a new direction. It also makes a statement when a competitor ditches its own maps for Nokia - that is what Microsoft did with Bing Maps. The company showcases Nokia’s Location Platform on its Windows 8 phones.

Apple Issues Insincere Map App Apology: No Plans to Offer Google Map Equivalent

by Holly Shoemaker

Today, Apple’s CEO Tim Cook issued a letter of apology to customers to address the disappointment and performance of its iOS 6 Apple Maps.

Overview of Apology

Apple apologized for the frustration its map app has caused, and said the company continues to work on improving functionality.

In the letter, Time Cook had no choice but to mention the option of using other apps until Apple addresses all issues – the letter even mentions Google Maps and Nokia Maps. However, Microsoft’s Bing gains the first mention, showing that Apple will not go out of its way to admit its mistake of splitting with Google Maps too soon.

Concluding Thoughts

Apple’s apology does not come across sincere. Instead of sticking to an apology, the company took the time to praise itself on the number of people using iOS 6, and stated that customers have searched for half a billion locations.

The letter should do little to diminish people’s frustrations with the application and its latest operating system. The numbers also do not equate to success when people retrieve incorrect information from the app. Furthermore, a letter of apology does not change the outcome that Apple has no equivalent product to Google Maps, which used to come as the default map app on previous iPhones. On Tuesday, Google confirmed that it had not submitted a map app to the Apple’s Apple Store. 

Apple prematurely severed its ties with Google here – being Apple only gets the company so far. It will have to quickly deliver an updated and tested application to its loyal customers. If not, Android and other products like Nokia Maps will continue to gain more customers.