Hi everyone,

Since it’s launch amid much fanfare by Steve Jobs and co a couple of weeks ago the Apple iPad has received plenty of media coverage. Hailed as the latest game-changer from the company who brought us the iPod and then the iPhone prior to the launch, the coverage post-launch has ranged from positive to negative and others somewhat undecided. In this post I thought I’d take a look at both sides aswell as sharing a few videos I came across which I thought you’d enjoy.

A look at the iPad’s Failures

Described in classic Jobs fashion as a “truely magical” and “revolutionary” device the initial reaction to the iPad was far from positive with many analysts quick to point out it’s failures. So much was written about what the iPad was going to look like and be able to do prior to the launch I guess it’s no surprise that it failed to live up to the ridicuously high expectations. Some of the main failures which one would be expecting Apple to address in future generations of the iPad are:

• It’s lack of Flash compatability. Like the iPhone and iPod Touch when it came to the iPad Apple continues to shun Adobe by refusing to support Flash on it devices. While it won’t stop consumers purchasing the iPad it’s certainly a frustration they won’t be happy with.
• No built in camera. While you wouldn’t really plan on taking pictures with your iPad given it’s size, the lack of a camera is a drawback when it comes to wanting to have video calls using Skype or similar software.
• No USB. For me this seems one of the biggest failures in the new device. How any tablet device could be produced without at least one USB port is beyond me. What it means is you will not be able to upload your own files or software to the device but instead all data and software that makes it onto your iPad will have to come through Apple approved channels such as your iTunes account.
• Decision to stick with AT&T. While it won’t affect us over this side of the Atlantic it does appear by all accounts that Apple’s continued willingness to go with AT&T as it’s network provider continues to frustrate users throughout the States who would much rather see Apple move to Verizon’s network.
• No multi-tasking. Another biggie for me is the news that the iPad does not allow for multi-tasking across apps and programs. If the iPad is to be a real alternative to a notebook then Apple needs to address this limitation sooner rather than later.
• The name is a weird choice! While the previous drawbacks can all be addressed in later versions of the iPad it is highly unlikely at this stage that Apple will backtrack on their choice of name for their latest web-browsing, music playing, book reading, game playing device. Many analysts believe Apple might have been better advised to go with the iSlate, iTablet or one of the other names suggested pre-launch rather than going with a name that instantly would lead to puns and jokes…

The above failings of the iPad have been covered on countless articles and blog posts since it’s launch on January 27th but for me the following video is the best sum-up of the iPad’s failings that I’ve come across!

Hitler Reacts To Apple’s iPad

It’s Not All Negative

Now to be fair to Apple not everything about the iPad has been a disappointment and it certainly seems that as the weeks have passed more and more analysts and commentators are starting to see the true potential of Apple’s latest device. So lets take a look at the features that are likely to lead to the iPad’s success:

• Sleek Design. Once again Apple has come up trumps in the design department with the iPad. It is super thin and light at just half an inch wide and weighing only 1.5 pounds.
• Built in 3G and Wifi. No surprises with the inclusion of this feature but in my opinion it will be key to the iPad’s success. The idea of a super thin, slick device that I can just pick up from my coffee table, hit an on-button and within seconds be surfing the web is a level of convenience that people all over the world want and expect in the “always online” lifestyle the sums up modern day living. Combine this fast online connection with the brilliant touchscreen surfing experience that we have come to expect from Apple products like the iPod Touch and iPhone and you can see where the iPad’s market lies.
• The App Store. A great move in the development of the iPad was to ensure that almost all existing apps developed for the iPhone / iPod Touch will run on the iPad without any changes by the developers. That means from day 1 purchasers of the iPad have access to over 140,000 apps which they can start downloading. That’s not a bad start and you can be sure that app developers are already working on their next generation of apps designed specifically for the larger display of the iPad. In particular I can see games developers rubbing their hands at the options available to them.
• The iBook Store. Again no suprises with the launch of an online bookstore in conjunction with the iPad as for weeks in advance rumours were rift of potential deals being signed with some of the biggest book publishing companies in the world to have their books available in Apple’s new online book store. Pitting Apple directly against Amazon and it’s very successful Kindle that launch of iBooks has the potential to be another big revenue generator for Apple. Personally I think the Bookshelf approach (see image to the right) is very cool, as soon as you buy a new book it appears on your bookshelf alongside your other books and you just tap to start reading. Flicking through the pages is very slick also and when combined with the iPad’s LED backlit screen, the whole experience oozes the quality we have come to expect from Apple.
• Battery Life. According to Apple when fully charged the iPad has up to 10 hrs of battery life. Manufacturers are known for over talking the battery life of their devices so it will be interesting to see how the iPad battery measures up in reality but if it does last up to 10 hrs it will be an impressive achievement for such a thin device which has no interchangeable battery facility. According to Jobs the 10 hr battery life will allow users to watch video non-stop on a transatlantic flight.
• The Affordable Price. Prior to the launch many analyst had highlighted the price-point of the iPad as being key to it’s success or failure. Most were expecting a price of anywhere between $750 to $1000 so when the iPad was eventually launched with a base price of $499 for the 16 gig model it certainly surprised quite a few people. Of course most purchasers will be looking at the more expensive models of the iPad which go up to $829 for the 64 gig wifi / 3G enabled version. Still with even the most expensive models coming in at prices lower than most analysts were expecting it is sure to help iPad sales get off to a good start. The option of signing up to an unlimited 3G data plan for just $30 a month looks like excellent value also.

And after letting Hitler have his say on the iPad’s failings above I thought it would only be fair to let the folks at Apple have their say on what’s “amazing” about the iPad and why we should all run out and buy one.

The Official iPad Video From Apple
 

A Look at how the Stock Price Has Reacted

Of course the main thing we are interested in here at SpreadTrader.ie is how has the stock reactedto the launch of the iPad. Well if we take a look at the chart below it is clear that following the initial launch on January 27th we had a classic case of “sell the news” with the stock suffering big drops in the days immediately after the launch, falling 10% back to $190 a share. This shouldn’t really be a surprise given the massive hype that preceeded the launch and the fact that the stock has more than doubled in the last 12 months. Interestingly though it did manage to hold just above the $190 level and as a result avoided hitting a lower low on the daily chart.

A look at Apple’s Chart (Click to Enlarge)

Since then Apple has recovered nicely, firstly building a nice base between $190 and $200 before finally breaking back above $200 last Tuesday. This move back above $200 was combined with a MACD cross-over which is another bullish indicator. Short-term $200 should act as support from here but a drop back to the low $190’s is still a risk in these volatile markets so tight stops should be used for any long trades. Longer term I’m still bullish Apple which will be no surprise to regular readers of the blog. I used the weakness after the iPad’s launch to go long again at around $193 and am optimistic that Apple will move to new highs over the coming months. There is some significant resistance at $215 but once that is cleared I see Apple moving up significantly, especially in the run-up to Q2 results due out the end of April. In my last Apple post a few months back I felt Apple was going to $200 before the end of 2009. At the risk of being completely wrong this time round I am going to call Apple hitting at least $250 before 2010 is out.

Finally before I wrap up this post I have one more iPad related video to share which I came across a few weeks back. We all know what a legend Steve Jobs is when it comes to presenting Apple’s latest technology to the world. It’s all about the adjectives and superlatives. Keep telling the audience how “amazing, great, phenomenal, awesome” the device is over and over again and they might actually believe it and go out and buy it! Neil Curtis, a video editor and body painter, decided to take the iPad launch event and strip out everything except the “magical” words we come to expect from Jobs and his colleagues. The result is a 180 second video that I’m sure will bring a smile to your face! You can check out some of Neil’s other work here.

The “Awesome” iPad

Right that wraps up my look at Apple’s iPad. I’m looking forward to checking one out when the hit the shops over here.

Until next time,
Happy Trading,
SpreadTrader.ie : -)