For iPad, Apple's App Store will play starring role

Summary: Monday morning analysis: Apple's App Store is a competitive advantage for its mobile devices. But we have yet to see its potential fulfilled in the iPad, Andrew Nusca writes.

Some interesting statistics were published by Piper Jaffray this morning noting that, among other things, Apple's App Store remains a competitive advantage that drives sales of its various iPod, iPhone and iPad devices.

You can read the full rundown in a post by our fearless editor-in-chief, but I couldn't help but ponder over how that impacts each mobile device in Apple's hardware portfolio.

You see, the iPhone is an attractive device -- some would say superior to the competition -- whose lead is bolstered by the broad adoption of its App Store. You may buy an iPhone for the looks, or the carrier, or the familiarity, or even FaceTime, but it's unlikely you're buying the product solely because of the App Store. Some time ago, before other smartphone manufacturers provided their own app stores, perhaps this was true. But now, most major smartphone platforms carry the basic apps consumers are looking for, certainly since developers broadened the amount of mobile operating systems they are willing to support. "Apps" are no longer much of a differentiator in the smartphone sector.

Similarly, the iPod remains a class-leading device whose primary purpose is to play music. All other bells and whistles are secondary; the many iOS functions of the iPod touch are a nice addition -- especially since the device serves as a trial run for an iPhone -- but they don't match the fact that the iPod's primary selling point is, and always will be, iTunes. (Not the program itself, mind you, but the ecosystem.)

Succinctly: both of these devices sell because they are better, more interesting or more productive versions of a basic device. The App Store helps them get there, but it's not the initial reason consumers begin seeking to buy a new device in the first place. (Those reasons: a need for a new phone; a way to listen to music at the gym; etc.)

But the iPad, well, that's a different story. The iPhone is used to make calls and the iPod is used to listen to music, but the iPad is used for -- well, a bunch of things. (Why do you buy an iPad? There's no obvious reason, of course, and that was an early criticism of the form factor itself.) And being an early mover in the tablet space, the iPad is winning against its first round of competition mostly because it offers a superior experience and a memorable name.

But it's not because of apps. Not yet.

In the iPad buying decision, the App Store is barely a blip on the radar, and rightly so. It's still early going to see what a tablet like this can do, app-wise. Novelty aside, the primary attraction for the iPad is the form factor and basic experience, at least for now.

So when I read Gene Munster's figures noting that the average price of iPad apps is several dollars higher than that of iPhone apps -- and Larry Dignan's extrapolation that the true value of apps is to drive device sales, as I mentioned at the top of this post -- I can't help but think that we have yet to truly see this occur for iPad sales, specifically, because it's so early.

But this tidal wave will come. There is so much more potential for the App Store to become a driver of iPad sales, certainly compared to the iPhone and iPod, namely because the iPad is not a multi-talented single-purpose device like its hardware siblings, but a multi-talented multi-purpose device, akin to a laptop.

Like the laptop computer, the tablet doesn't serve a single fundamental need. Consumers buy notebooks to check e-mail, or do work, or see family photos, or any number of myriad applications.

The iPad seems poised to follow suit. We've seen hints of this in recent months: a way to read magazines digitally; a way to stream movies on-the-go; a high-tech day planner; a portable PowerPoint presentation viewer. And that, to me, suggests that the App Store -- the content ecosystem that name denotes -- has yet to play its greatest role for Apple.

Topics: iPad, Apple, Mobility

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13 comments
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  • Nice apps, free apps search app

    I installed a couple of apps on my 'iP2 that show what apps are (in some cases, temporarily) free. I have more than I can use.
    psion@...
    • RE: For iPad, Apple's App Store will play starring role

      @Andrew....
      Say What!?!?
      We have been innuduated with verbage from ZDNet authors remarking that the number of apps and the App Store is the game changer between the iPad and all other tablets. Now you say it isn't?
      Make your freaking minds up already!!! Sheesh!!!! :O


      @psion....
      except for the dissappointing office apps, almost all of my iPad apps are of the free or $0.99 variety, and yes, I have way to many too use. Most suffer from the pixelation curse.
      :|
      rhonin
      • RE: For iPad, Apple's App Store will play starring role

        @rhonin
        There is nothing contradictory about holding both positions. Relative to other tablets, the App store drives sales of the iPad, and is the differentiator. Relative to where the market for the iPad will be once the App Store reaches its true potential, the current market is just the tip of the iceberg.
        This distinction is not all that difficult to figure out. That you couldn't informs any evaluation of the remainder of your comments.
        DeusXMachina
  • Slight Dissappointment ....

    I love my IP2, with a minor disappointment: the concept of files seems to be foreign, or I just haven't figured it out yet. I'd like to be able to create a document and then mail it to my workstation as a file -- or, better yet, save it and work on it some more. Alas, that is beyond my pea-sized brain. Sigh.
    websquad
    • RE: For iPad, Apple's App Store will play starring role

      @websquad
      Apple intentionally obscures the files because -- while it makes sense to folks -- actually _managing_ those files seems to be beyond most folks. Since the late 1980s, I've trained countless folks on computer usage -- both Mac and PC -- and everything goes great until we get around to saving a document from within an app ... or - God forbid! - opening one from within an app. They don't know where they put it, what they called it, etc. And when they do find it, then what? They double click it -- say, a Word doc -- and it opens. Then what? If they want to email it, they have to jump over to an email app, or possibly something like Yahoo! Mail or gMail, then click "attach" then (again) navigate to it, select it, and attach it.

      iOS removes those frustrations ... but gives us new ones -- especially those of us who do "get" file structures and are completely comfortable with them.

      Personally, I wish iOS had a file browser app that would allow you to look up files by seaching for text within them, or for files you worked with "last week" or "yesterday", then click and hold on them to get a context-sensitive menu of common choices of what to do with that file, such as "email it to someone", "text it to someone" or "print it".
      jscott69
      • RE: For iPad, Apple's App Store will play starring role

        @jscott69 Couldn't have said all of the above better, nicely done.
        non-biased
    • RE: For iPad, Apple's App Store will play starring role

      @websquad For our execs that have iPads, we recommend Documents to Go Premium by Dataviz for iPhone/iPad. Lets you create/edit/sync Office docs (sync via iTunes - plug in iDevice, click on iDevice in left column, then click on application tab- at the bottom there is a section with all the apps that you can use to transfer files). Can also sync to dropbox, google apps. Hope this helps :)
      Gritztastic
    • RE: For iPad, Apple's App Store will play starring role

      @websquad
      Just use an app called Good Reader. Or, if you use an App such as Pages on iPad, it provides some file structure and local copies of your documents (i.e., you can work on them off line and later email them from Pages). You really don't need a (visible) filesystem on iPad. It's resource consuming and the source of difficulties for many users.
      Eleutherios
    • RE: For iPad, Apple's App Store will play starring role

      @websquad <br>I use Box.NET integration for this along with the tools that @jscott69, @Eleutherios, and @Gritztastic recommended.
      Ram U
    • The documents are visible in iTunes

      @websquad
      If your app supports "documents", they are visible in iTunes under the "Apps" tab at the bottom of the "view" (just scroll all the way down). From there, you can select an App and see it's Documents. You can select files there and drag and drop them in and out, as well as delete them.

      With iCloud, these files will go to the cloud, and not be backed up on the computer system, only your iDevices and the cloud. Then, Mac software can get the latest version directly from the cloud and update your device when you are done editing.
      greggwon@...
  • RE: For iPad, Apple's App Store will play starring role

    Actually AppStore is the main reason that I found a lot of people paying interest within my circles, family and friends. I have seen 90% of them going for iPad2 and only a few of them went for Android and one went for HP Touchpad. None of these circles have gone for Playbook, even the current BlackBerry owners, their main complaint is size and lack of internal email client.
    Ram U
  • RE: For iPad, Apple's App Store will play starring role

    I really like the iPad and have found most of what I need in iPad app versions. There are a few things that I use the iPhone version on because there is not iPad formatted app.

    I've ditched my laptop and netbook for the iPad. And when I need files... LogMeIn's Ignition is the app I use. I know this won't work on a plane (requires internet 3G or WiFi), but my business travel is limited to a few times a year, so that is not much of a loss to me.

    The iPad 2 and my Zagg case/keyboard tograther are about 2 pounds and give me everything I really need (plus some great entertainment).

    Battery life is execelent.

    I don't see any reason to switch back to a laptop. So, for now my only portable computer is an iPad 2.
    jdb@...
  • RE: For iPad, Apple's App Store will play starring role

    App store is number one reason for me getting an iPad 2
    KeithSloan