Apple's iPad: Redefining the Tablet PC Industry?

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Case Details:

Case Code : MKTG264
Case Length : 23 Pages
Period : 2009-2010
Pub Date : 2011
Teaching Note :Not Available
Organization : Apple Inc
Industry : Computers and Peripherals
Countries : US, Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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It was a touchscreen tablet that offered a multimedia entertainment experience where users could read e-books, send e-mails, watch movies in high definition (HD), browse the Internet, play games, flip through photos, and enjoy many more features. Analysts believed that if Apple delivered on its promises, the iPad could become a sign for future computer gadgets coming into the personal computer (PC) market. It was also likely to seize the notebook market very soon, they said⁹. According to a research study conducted by Morgan Stanley¹⁰ , the iPad had the capability to cannibalize the market share of some product categories like notebooks/netbooks, e-readers, the iPod touch, and personal computers (PCs)

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However, some analysts pointed out that despite the fact that the iPad was gaining success world-wide, it was facing some problems which might affect its future prospects.It was found deficient in supporting several key features such as a Flash player, USB port, etc., which were considered essential prerequisites of a successful device in the 21st century. Moreover, with the announcements of Research In Motion (RIM)¹¹ , Google Inc.¹² (Google), Hewlett-Packard Company (HP)¹³ , and other major competitors that they intended to launch their own iPad/Slate-like devices by 2011, the tablet PC industry was expected to heat up. In addition, Apple was also facing several legal problems, with HTC Corporations (HTC) suing the company for violating its intellectual property rights.

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9]"Apple iPad A 'Winner,' 'Game Changer,' Reviewers Say (Update2)," www.businessweek.com, April 1, 2010.
10] Morgan Stanley, headquartered in New York City, New York, USA, is a global financial services firm.
11] Research In Motion (RIM), is the designer and manufacturer of the award-winning BlackBerry Smartphone, used by millions of people around the world.
12] Google Inc., headquartered in USA, is a multinational public cloud computing, Internet search, and advertising technologies corporation
13] Hewlett-Packard Company, headquartered in USA, is a multinational information technology (IT) corporation and one of the world’s largest IT companies. It specializes in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services.


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