A lot of people have asked me about the iPad since the unveiling. The questions lead me to wonder what was expected? A beefed-up iPhone? Or a slimmed-down Mac? A merger of both? Will it wind up like the Mac Cube, iPod Hi-Fi, or Apple-TV products?
I now think the question of ultimate success may come down to who can provide a better on-line marketplace for things that can be downloaded. And that requires defining how to compare marketplaces, especially digital marketplaces for digital goods.
Some thoughts on a good marketplace:
- large base of suppliers to make the goods
- efficient transport of goods
- efficient & secure exchange of money for goods
- large base of consumers to buy the goods
- effective means for consumers to consume the goods (computer devices for digital goods)
- builds and retains high consumer and producer confidence and trust
A financial specialist can add a lot to the list, I’m sure. And when I say “efficient”, I include quick, low-cost, and easy-to-use.
Did Apple succeed in an mp3 player market by competing better in all the same old ways? Apple’s products cost MORE. They usually had less storage capacity. Apple actually delivered fewer features. What Apple did have was a better marketplace for the digital goods that customers consumed with the Apple’s products. (Example: 99 cents for the one song you wanted, not $18 for the whole CD, and you get it now, with one-click.) Customers have shown us their opinion of that value proposition.
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