iPad
Successful launch -
- case study
Team:
Monika Wyrwał
Inés Guardans
Yocana Mais
Pasquale Ciriello

Situation prior to the launch

What was the aim of the iPad?
- The iPad is a hybrid version of the iPhone and the iMac.
- Needs covered:
❖ Connectibility
❖ Acessibility
❖ Functionality
❖ Comfortability

iPad usage
Source: Business Insider
- Surfing the Internet (web
browsing and
communication) is
declared to consume most
of iPad users’ time - nearly
60%
- iPad is used not only for
web activities but also for
watching videos and
playing games

- Apple iPad is a
threat to Amazon
Kindle since it is
more complete and
has ebooks as well.
- 75% of iPad
consumers are
highly satisfied
compared to 54% of
Kindle’s.
iPad as an e-book reader

Segmentation and Targeting

- Tablet users are higher than the total sample from the 135-150K income rage
on.
- We also highlight that tablet owners skew male, aged 18-34.
Source: Online marketing trends

Before iPad
- A full decade before Jobs launched the iPad in 2010, Bill
Gates launched Microsoft's touch input tablet computer
- Because Microsoft envisioned it as a full-fledged PC and
equipped it accordingly, it was expensive --- typically
$2,000 or more
- Steve Jobs recognized that the tablet should be a
consumer device and not a replacement for a desktop or
laptop

Negative attribute
- Games addiction - more and more kids losing interest in things like sports and
reading
- Technological addiction - according to a 2013 Policy Statement by the American
Academy of Pediatrics, 8- to 10 year-olds spend 8 hours a day with various digital
media while teenagers spend 11 hours in front of screens
- DVD players, newspapers, books, cameras and notebooks are among the products
iPad is substituting

The Brand communicates its competitive advantages
- Apple’s keynote - brand
presentation is the tool the company
uses a few times a year to unveil its
other products to millions of people
- These online-streaming keynotes
have become as important a
production of Apple as the devices
themselves

Key aspects that made the launch of the iPad a
success
In 2010 the iPad market share in the tablet market was around 83%. This success
can be explained by three factors:
- First tablet without a keyboard
- The Apple brand recognition and reputation
- The consumer loyalty

Competitors

Industry
Attractiveness Absolute Cost
advantage
Long Standing
Brand Loyalty
Level of technology
and High Standard
qualities
Advertisement
Budget
Barriers
to Entry

Substitute effect of the product: Normally, the iPad can be substitutes by
either an iPhone or MacBook.
Complementary effect of the product: the appearance of the iPad stimulates
the sales across apple product line.

iPad’s current situation - year 2017
- Newest iPad Pro
announced at WWDC
2017 on 5 June 2017
- key features: much
more responsive and
natural Pencil, better
camera, larger screen
longer battery life
https://www.apple.com/shop/buy-ipad/ipad-pro

Global tablet market situation and forecasts
- Nearly 193 million iOS tablets
were shipped in 2016 (while
Android and Windows collective
shipments valued at 226
million)
- Android tablets sales will grow
at a highest rate till 2026
because of low price and
popularity in emerging markets
- global tablet market is expected
to reach nearly US$ 600 billion
by 2026
https://www.statista.com/chart/10563/top-5-tablet-vendors/

Blind people - a potential niche?
- BLITAB® is the World’s first
tablet for blind and visually
impaired people
- Braille device for reading and
writing
- innovative in displaying one
whole page text at once
- Instead of using a screen,
displays small physical
bubbles
https://blitab.com/

iPad Pro commercial series - video
https://www.statista.com/chart/10563/top-5-tablet-vendors/

BLITAB®
https://www.youtube.com/watch?v=QuKxgBCq9Fg

iPad​ ​Case
The iPad​1
is a hybrid version of the iPhone and the iMac and it was launched in 2010. It is big enough to read
documents and do research but it is much lighter than a computer and easier to carry around as well.​2
In
practice, we could say that nobody actually needs an iPad but people who only have an iPhone or an iMac
might​ ​chose​ ​to​ ​buy​ ​one​ ​as​ ​a​ ​complement.​3
The needs Apple is covering are connectability, comfortability, functionality and accessibility. One of the main
uses the iPad has is that of reading information that was too small to be read in an iPhone screen but that
didn’t need a whole computer. ​These include newspapers and books, which could be downloaded from the
consequent apps, as well as web-browsing. Another important feature the iPad incorporated is touchability,
which​ ​is​ ​becoming​ ​more​ ​present​ ​nowadays.
Segmentation​ ​and​ ​Targeting​​ ​​4,​ ​5,​ ​6
We considered the segmentation and targeting together and then we highlighted in bold the segments that
were​ ​being​ ​most​ ​strongly​ ​targeted​​ ​​
when​ ​the​ ​iPad​ ​was​ ​launched.
Table1:​ ​Market​ ​segmentation​ ​and​ ​targeting​ ​-​ ​own​ ​creation;​ ​key​ ​target​ ​groups​ ​in​ ​bold
Is​ ​something​ ​extremely​ ​different​ ​in​ ​the​ ​new​ ​product​ ​or​ ​just​ ​an​ ​improvement​ ​of​ ​a​ ​previous​ ​one?
Apple's iPad is a revolutionary product. But it wasn't Steve Jobs' idea. A ​full decade before Jobs launched
the​ ​iPad​ ​in​ ​2010,​ ​Bill​ ​Gates​ ​launched​ ​​Microsoft's​ ​touch​ ​input​ ​tablet​ ​computer​.
Because Microsoft envisioned it as a full-fledged PC and equipped it accordingly, it was expensive --- typically
$2,000 or more​. Despite that price tag, it couldn't really replace a desktop or laptop. It only found use in niche
markets.​7
So​ ​if​ ​Microsoft​ ​was​ ​a​ ​decade​ ​ahead,​ ​why​ ​did​ ​Apple​ ​become​ ​the​ ​King​ ​of​ ​the​ ​Tablets?
Steve Jobs recognized that the tablet should be a consumer device and not a replacement for a desktop or
laptop PC. He saw that it would require a ​different operating system​, one designed for tablets, not traditional
computers.
Negative​ ​attribute​ ​that​ ​the​ ​product​ ​is​ ​introducing​ ​to​ ​the​ ​market
● Games addiction ​- as more and more kids get sucked into a black hole of iPad games, losing interest in
things​ ​like​ ​sports​ ​and​ ​reading,​ ​their​ ​parents​ ​are​ ​becoming​ ​increasingly​ ​concerned.
● Technological addiction - according to a 2013 Policy Statement by the American Academy of Pediatrics, 8-
to 10 year-olds spend 8 hours a day with various digital media while teenagers spend 11 hours in front of
screens.​ ​One​ ​in​ ​three​ ​kids​ ​are​ ​using​ ​tablets​ ​or​ ​smartphones​ ​before​ ​they​ ​can​ ​talk.​8
● DVD​ ​players,​ ​newspapers,​ ​books,​ ​cameras​ ​and​ ​notebooks​ ​are​ ​among​ ​the​ ​products​ ​iPad​ ​is​ ​substituting.​9
Brand​ ​communicating​ ​its​ ​competitive​ ​advantage​ ​to​ ​consumers

One of Apple’s most successful products—which rarely gets recognized as such—is made not of aluminum
and​ ​glass,​ ​but​ ​of​ ​words​ ​and​ ​pictures.
● Apple’s keynote - brand presentation is the tool the company uses a few times a year to unveil its other
products​ ​to​ ​millions​ ​of​ ​people.
These ​online-streaming keynotes have become as important a production of Apple as the devices
themselves. An Apple event is a distinct kind of TV special: an ​extended commercial — this one ran nearly
two hours — that people watch willingly, to get a glimpse of the new products and an art-directed idea of their
better​ ​selves.
Key​ ​aspects​ ​that​ ​made​ ​the​ ​launch​ ​of​ ​the​ ​iPad​ ​a​ ​success​ ​Vs​ ​Competitors
● In​ ​2010​ ​Apple​ ​had​ ​83%​ ​market​ ​share​ ​in​ ​the​ ​iPad​ ​market.​ ​​10
Success​ ​factors​ ​were:
● Brand​ ​recognition​ ​and​ ​reputation.
● According​ ​to​ ​Quora​ ​,​ ​iPad​ ​was​ ​the​ ​first​ ​tablet​ ​without​ ​a​ ​Keyboard
● Consumer loyalty promoted by tying their products together through apps like iTunes and iCloud, which
incentivizes buying more Apple products. According to a CNBC poll an average american household owns 2.6
Apple​ ​products.​11
● Competitors launched similar products (annex1)​
, but the iPad marks the difference for the long battery life and high
hardware​ ​and​ ​software​ ​performance.
Industry​ ​Attractiveness
The tablet market is an oligopoly: few competitors and high barriers to entry, so it’s difficult to the new firms to
entry in the market. However, barriers to exit are low since manufacturing is done in countries with low cost of
labor.
Barriers​ ​to​ ​entry:
● Absolute cost advantage​: Apple has a superior supply chain and low production cost, having produced around
2.5​ ​million​ ​per​ ​month​ ​of​ ​the​ ​first​ ​generation​ ​of​ ​iPad​ ​in​ ​Foxconn,​ ​Chinese​ ​manufacturing​ ​company.​12
● Long Standing Brand Loyalty: Apple and their competitors have a high brand loyalty, meaning most users are
not​ ​willing​ ​to​ ​switch​ ​companies.
● Advertisement Budget: Advertisement budget is very large for all firms established in the market. For instance,
Apple’s​ ​advertising​ ​budget​ ​for​ ​2010​ ​was​ ​around​ ​691​ ​million.​13
● Level of technology and high-quality standards​: Creating a tablet requires a high investment in hardware
and software, which differentiates each specific tablet’s operating system. New entry companies will need heavy
investment​ ​in​ ​R&D​ ​tools.
● Complementary and substitute effects of the Product: ​Substitutes can be iPhones or Macbooks.The iPad
has a complementary effect in other apple products, such as the increase in sales of MacBook resulting from
iPad’s​ ​marketing.​14
iPad’s​ ​current​ ​situation:
The ​iPad Pro 2 ​10.5 inches (called simply iPad Pro) was announced at ​WWDC 2017 on 5 June 2017 to
replace the 9.7 inches iPad Pro launched in 2016.​15
Among its key features the ​Pencil seems much more
responsive​ ​and​ ​natural,​ ​there​ ​is​ ​a​ ​better​ ​camera,​ ​a​ ​larger​ ​screen​ ​and​ ​longer​ ​battery​ ​life.
Global​ ​tablet​ ​market​ ​situation​ ​and​ ​forecast:
Nearly ​193 million iOS tablets were shipped in 2016, whereas Android and Windows collective shipments
were valued at 226 million. It is expected that in forecast period 2016-2026, ​Android tablets sales will grow
at a highest rate​, because of their low price and popularity, especially in emerging markets. In 2017, total
tablet shipments are estimated to surpass 455 million units. Additionally, the ​global tablet market is expected
to​ ​reach​ ​nearly​ ​​US$​ ​600​ ​billion​ ​​by​ ​2026.​16

Marketing​ ​initiative​ ​and​ ​potential​ ​market​ ​niche:​ ​people​ ​with​ ​visually​ ​imparnesses
BLITAB® is the World’s first tablet for ​blind and visually impaired people. It is a braille device for reading
and writing and innovative in displaying one whole page text at once. Instead of using a screen, displays small
physical​ ​bubbles.​17
Annex
Annex​ ​1

Source:​ ​DG​ ​Connect.​ ​(January​ ​16th​ ​2012)​ ​​iPads​ ​for​ ​Business.​ ​​Retrieved​ ​from:
http://blog.parallels.com/wp-content/uploads/2012/02/ipad-survey-final-2.pdf
Source​:​ ​​Sumit,​ ​Roy.​ ​(n.s)​ ​​Online​ ​Marketing​ ​trends​.​ ​Retrieved​ ​from:
http://www.onlinemarketing-trends.com/2011/08/statistics-on-tablet-usage-top-3-trends.html

Source:​ ​Newest​ ​iPad​ ​Pro​ ​-​ ​​https://www.apple.com/shop/buy-ipad/ipad-pro
​ ​​Source:​​ ​​https://www.statista.com/chart/10563/top-5-tablet-vendors/
Source:​ ​​https://blitab.com/wp-content/uploads/2016/06/new-braille-design-tablet-blitab-19-600x600.jpg

References
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