Apple Inc CEO Steve Jobs took the wraps off an “iPad” tablet with a lower-than-expected price tag, placing a big bet on a new breed of gadgets that aim to bridge the gap between smartphones and laptops.
Jobs, who returned to the helm last year after a much-scrutinised liver transplant, took the stage at packed theatre on Wednesday and showed off a sleek, half-inch thick tablet computer with a 9,7-inch touchscreen. It can run movies, books, games and a gamut of applications.
The iPad will sell for as low as $499 (R3784,90) for 16 GB of storage. An extra $130 (R986,05) is needed to equip it with third-generation wireless capability. Apple announced a data plan with AT&T Inc, which appeared to have beaten out Verizon Wireless for the deal.
“What once occupied half your living room can now be dropped in a bag,” said NPD analyst Ned May. “It’s pulling together a variety of needs [in] a universal entertainment device.”
Some key features of the new device:
- 9,7 inch (24.6 cm) colour multi-touch display.
- Costs $499 for 16 gigabytes of storage, $599 for 32 GB, $699 for 64 GB.
- 3G wireless capability costs an extra $130.
- AT&T Inc data plan costs $14,99 per month for 250 MB of data, $29,99 for unlimited data.
- 10 hours of battery life, and a month on standby.
- 1,3cm thick, weighs 0,68kg.
- New iBook store has partners including Pearson Plc’s Penguin, News Corp’s HarperCollins, CBS Corp’s Simon & Schuster MacMillan, Lagardere’s Hachette Book Group.
- WiFi and bluetooth connectivity, compass, ability to view in portrait and landscape modes.
- Runs a variation of the iPhone operating system. Apple says all iPhone apps can run on the iPad.
- Supports iWork, Apple’s productivity suite that competes with Microsoft Office.
- 1GHz Apple-made A4 chip.
- WiFi models ship in late March, 3G shipping in April.
Shares of Apple were up 1,7% after the pricing details were announced to trade at $209,40, within reach of their all-time high of $215,59 logged on January 5.
Past failure
Apple hopes to sell consumers on the value of tablet computing after other technology companies, including Microsoft and Toshiba, have failed to do so in recent years.
The tablet is Apple’s biggest product launch since the iPhone three years ago, and arguably rivals the smartphone as the most anticipated in Apple’s history.
Culminating months of feverish speculation on the internet and among investors, Jobs took the stage at a jam-packed theatre in San Francisco and, with his famed showman’s flair, began displaying the device’s features.
Jobs said there was a need for a new type of device that would sit between a smartphone and laptop computer, and that can perform tasks like browse the web, play games and display electronic books.
“If there’s going to be a third category of device, it going to have to be better at these kinds of tasks,” he said.
The iPad has a near life-sized touch keyboard and supports web browsing. It comes with a built-in calendar and address book, Jobs said, calling it “awesome”.
Not an easy sell
Despite the buzz surrounding the launch and Apple’s storied golden touch on consumer electronics, the tablet is not necessarily an easy sell, analysts say.
Consumer appetite for such a device category has yet to be proven, although plenty of devices such as Amazon.com’s Kindle e-reader are vying for that market.
Shares of Apple have generally risen ahead of Wednesday’s event. The stock, which was down ahead of the pricing details, was up about 1.9% at $209,80 in afternoon trading.
As iPod sales wane, Apple is looking for another growth engine and hopes to find one in the tablet. But the move is not without risk. Consumers have never warmed to tablet computers, despite many previous attempts by other companies.
Analysts’ sales predictions for the tablet vary widely, with many believing Apple can sell two million to five million units in the first year. — Reuters