Holiday Hope for the iPad
How well will iPad sell in its first holiday season on the market? Predictions of lukewarm sales surfaced earlier this month, but they've been countered by research from Nielsen that suggests it could be the season's hottest seller. About a third of American kids 6 to 12 want one, and a fifth of Americans 13 and above are interested. Of course, there's a difference between "want" and "will buy" ...
A slew of good news this week may indicate that Apple could have quite a happy holiday season.
The company released iOS 4.2 at last, kids in the U.S. apparently want an iPad for Christmas, Foxconn has begun mass-producing iPads, and demand in South Korea is said to be strong.
Finally, Apple's trying to regain the energy behind iAds by extending the online ads platform's reach overseas.
Adding Muscle to iOS with Release 4.2
iOS 4.2, the latest version of the operating system that runs iPads, iPhones and iPod touches, incorporates several new functions, including AirPlay and Game Center for iPad, and it brings the iPad on par with the iPhone in terms of its features, such as multitasking.
It also incorporates the Find My iPhone service, which is now available free.
"Games and multitasking will appeal to everyone," Maribel Lopez, founder and principal analyst at Lopez Research, told MacNewsWorld.
AirPlay lets users stream music, video and photos wirelessly from their iDevices to Apple TVs; used with AirPort Express, it lets users wirelessly stream content to stereos or powered speakers.
"I think the ability to stream content wirelessly to stereos or powered speakers will become a tablestakes feature going forward, so it makes sense that Apple would push AirPlay now," Lopez stated.
Apple also released Apple TV 4.1 software Thursday. AirPlay is perhaps aimed at boosting sales of Apple TV -- one can stream videos to an Apple TV using AirPlay.
Cozying Up Closer to Businesses
Further, Apple has introduced new features and beefed up existing ones to make iOS 4.2 more enterprise-friendly.
"I think Apple is targeting many different parties with this release: Gamers, heavy multimedia consumers, and the enterprise," Dmitriy Molchanov, an analyst with the Yankee Group, told MacNewsWorld.
"But in my mind, the most intriguing changes in iOS 4.2 are around productivity and enterprise support," Molchanov added. "It's another indication that Apple fully intends to make the tablet form factor play nicely with enterprise security demands."
One enterprise-friendly feature in iOS 4.2 is application programming interfaces (APIs) that help encrypt custom and commercial applications, Molchanov elaborated. Another consists of mobile device management APIs that let third parties wirelessly configure settings, monitor compliance with enterprise policies, and wipe or lock devices.
Further, iOS 4.2 lets enterprises wirelessly deliver applications to employees over WiFi and 3G, and it supports SSL (Secure Sockets Layer) over virtual private networks, Molchanov pointed out.
"Given the early indication of enterprise willingness to experiment with tablets, these features are major changes that will help push forward enterprise adoption of the devices," Molchanov opined.
iRocking the Holiday Season With the iPad
Consumer demand for iDevices is also expected to surge this holiday season.
Almost one third of American kids aged between ages 6 and 12 want the iPad, a survey by Nielsen found. The survey also found that the iPod touch generates as much interest among kids as computers do, and it outstrips demand for the Nintendo DS and the Sony PlayStation Portable.
Further, 18 percent of Americans above the age of 13 are interested in the iPad, Nielsen found.
Meanwhile, Foxconn, which manufactures a lot of products for Apple, has begun mass production of iPads at its new plants in Chengdu, China, Digitimes reported. The company's plants in Shenzhen, China, also turn out iPads.
The iPad's also pretty hot in South Korea, with pre-orders hitting 60,000 units over the past week, the Korea Times reported.
Apple is increasing orders for the iPad from suppliers, Mike Abramsky, an analyst with RBC Capital Markets, wrote in a note to investors last week.
In a move that could help stave off a flight of publishers to the Android platform, Apple is working with News Corp. to produce a digital publication for the iPad. This publication, to be called "The Daily," will reportedly hit iPads in December.
That might take the wind out of the sails of Next Issue Media, a consortium of five major publishers, including News Corp., Time Inc. and Conde Nast, which recently announced it would launch a digital newsstand on the Android platform. It's believed the publishers were trying to bring Apple to heel because they're unhappy with its terms for putting digital publications on the iPad.
Going Overseas With iAds
Apple's also moving to shore up its iAd online platform. It will expand iAd to the UK and France in December and then to Germany in January. Apple claims to have signed up major brands for iAds in Europe. These include L'Oreal, Renault, Louis Vuitton, Nespresso, Perrier and Citi.
Earlier this month, Apple and Japanese ad agency giant The Dentsu Group announced a partnership to expand iAd to Japan in early 2011.
Whether Apple will push iAd into other countries in Europe remains to be seen.
Apple is not saying anything. "We're regrettably unable to discuss any future plans," company spokesperson Jason Roth told MacNewsWorld.
The iAd platform is built into iOS 4.
The Dow took a tumble Tuesday, and with it went AAPL, losing 1.48 percent to close at US$308.73.
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