The Cornerplay: Apple's iPad strategy is to kill small tablets

[Jeffrey Yuwono]

If a PC company had flat sales, you might think its CEO would go "phew, not bad when the overall market is declining." Not really though: Lenovo, HP, Dell, Acer and Asus all increased sales this past quarter even though the overall market declined. Apple, too. It's not clear which PC company is suffering, but the strong are getting stronger while the weak are now exiting.

So flat iPad sales -- in spite of what Tim Cook may say -- is alarming to Apple and Apple watchers. Moreover, now that Apple is selling larger phones, people are realizing that you don't need a big phone and a small tablet. The bigger iPad will need to grow a lot faster for the overall business to grow.

Editor’s Note:
Jeffrey Yuwono is CEO and co-founder of Feecha, a hyperlocal news app for neighbourhoods. A Stanford MBA and Duke undergrad, Jeff writes insightful observations about technology once a day on his blog The Cornerplay and now on this weekly column on TechSpot.

The iPad may not be one of the weak, but it is not one of the strong either. What should Apple do? The company has two options: 1) make the iPad more appealing to a new market segment, and/or 2) deliver the same proposition to the existing market segment better.

That new segment is business. We dedicated a previous column to this topic, but here's the recap: Apple has a ~13-inch iPad Pro in development with split-screen functionality that will make the iPad a stronger suit for business users. The company is also rumored to have a revamped, 12-inch MacBook Air -- in other words, that the portrayed iPad Pro might have a larger display than the company's most popular laptop says volumes.

According to the Wall Street Journal, Apple delayed the iPad Pro to early 2015 because of supply issues and so didn't announce it in yesterday's keynote.

Instead, Apple chose to focus on the second strategy: doing the same thing better. The iPad 2, 3 and 4 basically had the same body, so pundits were somewhat surprised to see a noticeably streamlined iPad body for the second year in a row. Perhaps that speaks to the urgency driving Apple with its iPad line.

Apple's strategy with the iPad Air is clear with the sequel -- they want to improve the Air enough to make the iPad mini obsolete (and potentially other competing small tablets in the process). The key to doing that is reducing the iPad Air's weight. A larger tablet does everything better than a mini tablet except portability, and specifically, being able to hold the device in one hand while you read. Large tablets were too heavy for that purpose.

That may change with the iPad Air 2, which is 18% thinner and 7% lighter than its predecessor.

I considered purchasing the first iPad Air when it launched and while at the store I tested for "one hand holdability while lying down in bed" (don't ask how). It was just a shade too heavy. That will be the test I give the iPad Air 2 again. If it passes, the iPad mini is truly dead and buried.

The iPad mini 3 is getting squeezed from both sides: the iPhone 6 Plus from the bottom and the iPad Air 2 from the top. There is less and less need for this device to exist; mini tablets, like I long predicted, will eventually become a niche device.

It's no accident Apple spent considerable time talking about the iPad Air 2, and then simply glossed over the largely unchanged iPad mini 3.

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[Willzzz]

My current tablet is 100g lighter and while comfortable for extended one handed use, I suspect even the Air 2 would go over my personal comfort limit. Also it certainly won't fit in my jacket pocket.

 

[MilwaukeeMike]

That new segment is business.

Apple will have an uphill battle against the Surface Pro in the business space. I'm currently working in a building that probably has a few thousand Dell laptops. We're slowly replacing them with the Surface Pro 3. It's just as powerful as a business laptop, but it is also a tablet.

they want to improve the Air enough to make the iPad mini obsolete

Both you, the author, and Apple seem to have forgotten about cost, and more importantly, value. The new Air is $500 and comes with a borderline unusable 16GB of storage. By keeping the base storage low, they both save costs on that model and force more people into the $600 model (64GB). If you want a latest gen iPad that has a cellular connection, it'll run you $529! I know Apple customers are often willing to tap into their 401(k) and/or put off that new car purchase to pay for an iDevice, but for the rest of us these iPad prices look crazy. The Samsung 8.4 inch S Tab is almost 50 grams lighter than the mini 3, has an SD slot and costs the same. The Samsung's screen is higher res, although I'll bet the ipad screen looks nicer color-wise. neither of which a new tablet user would be able to discern.

Also, the usability and size preference is just that.
The cost of entry for what you get is just really high for iPads, and the mini helps offset that a little, especially for households with kids. I think it'll be around for a while.

 

[GhostRyder]

I have never been a tablet person until I got my surface Pro and even then that's only because it still functions like a normal laptop and desktop except with a touch screen. I knew this was coming because honestly I think the idea of a small tablet is becoming obsolete with (Like stated in the article) smart phones getting so big.

I already feel having a tablet and a smart phone is foolish to begin with. Its just a weird investment especially when you look at the mini-tablets because they are not enough bigger than even my iphone 5S. Some people though think they need one of everything to be happy and honestly I just wonder when the burn out will happen with these fads.

 

[PaladinNH]

So I could have the old Mini 2 now for $299 or a barely better performing Air 2 for $499? That was actually my takeaway from the new announcements. Same (very good) resolution, marginally better performer, and improved camera don't justify another $200 for me, and likely a lot of others. At 2048x1536, it's sharp enough that it doesn't really need to be bigger, I can read even very small text incredibly clearly.

I like the Air, the Air 2, and 10" tablets just fine. But not for the additional money. Mini 2 is still the best value option, and even better at $299.

 

[Skidmarksdeluxe]

"I considered purchasing the first iPad Air".
I also considered the same thing then I sobered up.

 

[yogajitsu]

Yeah, I think the ipad mini hit a sweet spot in the size range for usability and with the same resolution and features of the larger ipad 2. Its a shame they didnt put an A8 processor in the mini 3 and give it all the same features as the ipad air 2. I think apple thought ipad mini users wouldnt notice or mind but it is not a toy or kid version. I'm hoping they realize the mistake and come out with a mini 4 during the summer.

 

[ChromeShine]

So I could have the old Mini 2 now for $299 or a barely better performing Air 2 for $499? That was actually my takeaway from the new announcements. Same (very good) resolution, marginally better performer, and improved camera don't justify another $200 for me, and likely a lot of others. At 2048x1536, it's sharp enough that it doesn't really need to be bigger, I can read even very small text incredibly clearly.

I like the Air, the Air 2, and 10" tablets just fine. But not for the additional money. Mini 2 is still the best value option, and even better at $299.

I have the iPad Air = much better than the Mini for $399 now. If you are into tablets, it is the deal. I find a tablet as a third fiddle instrument. I still use the PC and smartphone the most, with the tablet finding some limited use, and OK to have on the desktop for using Siri and watching notifications for News and such. For showing photos, the iPad Air is first class. The iPad Mini is not as good a screen.

 

[J_Gert]

As pilot in a small cockpit, the mini is one of the best things to have. ForeFlight kills all competition when it comes to admin in the aircraft. The Air is just too big for us in fighter aircraft which sets the mini for success in our world.