Apple’s introduction of the iPad Pro with a 12.9″ screen and optional detachable keyboard, poses an interesting question. Is it a copycat tablet or a new product category?
This may seem a minor point, but it is really a major one. At Regis McKenna, we pioneered the new product category creation strategy, which was later described in David Aaker’s book, “Brand Relevance: Making Competitors Irrelevant”, David A. Aaker, Jossey-Bass, 2011. (see Brand Preference versus Brand Relevance) The central point is rather than beating your head against established, much larger, competition, it is far easier to find a way to be a major player in new product category with little, or no, competition. Making that category successful is the most difficult task. You can’t just slap a label on it and proclaim yourself “king of the category”. Making it relevant to your target market (consumer or industrial) is the critical task and requires significant coordinated effort, especially for smaller companies.
Proper market segmentation and consumer use cases are vital to the understanding, so let’s take a look at Apple’s pending introduction of the iPad Pro.
Apple’s iPad Pro, the first true TabTop?
Tablets (including ones like the iPad Mini are used primarily when stationary, not on the move, and are still largely used for consumption of content not creation. Surging the web and reading/writing text/email messages do not need major leaps in technology to continue to serve needs for several years (I still have an iPad 1). So, how do you get people to continue to purchase them? You create a new category!
Larger form factors of Tablets (~ 13″ diagonal screens) are interesting because they are much larger in physical size compared to most tablets today and can be used with a detachable keyboard that is nearly, if not full sized. . At 8.68″ x 12.00″ the iPad Pro is 68% larger than the iPad Air 2. That means they can be used as a tablet and/or a replacement for a laptop (therefore: TabTop) by many people. Although some early commentators have criticized the available storage size as a problem (Is 128 GB really problem?), with cloud storage available, memory limitations are not necessarily an issue.
Category Creation
We will never “know” Apple’s strategy here, nor mat they give it a name like TabTop, but it seems a textbook case study in category creation. It is more than a tablet, but less than a traditional notebook/laptop. Some have said, “It’s just a copy of the Microsoft Surface Pro with less storage but a bigger screen”. Other companies may try to copy it in product specs, but that is not the issue or a true differentiator. I believe it is a new product category.
iCloud Storage as the Facilitator and Differentiator
Though much-maligned, iCloud is a true weapon and key differentiator here because it overcomes some key objections relating to the amount of storage locally available on a TabTop. In almost all cases, WiFi is easily available when traveling and more concerned users can get one with cellular connection capability. This means you do not need to have all your content on the device. It’s available in the cloud. Additionally, it provides unparalleled flexibility since it can be accessed from your Smartphone, Tablet, TabTop, Laptop or Desktop, as well as, another person’s hardware of any type that has cloud access. If you are an Apple user, all your email, contacts, calendaring and messaging are synchronized across all your devices making your life easier.
Use Cases
To create a new category, use cases are needed to start off. Clearly you can use the iPad Pro as a traditional tablet, but you can also use it as a notebook/laptop replacement, especially for most who are not “power users”. So let’s outline some key use cases:
- Personal Traveler or Executive, who wants notebook-like applications and features in a compact, lightweight, long-lasting form.
These users primarily need to access email, surf the web and occasionally create long-form content. Weight and physical size are always critical here. Large files (or large quantity of files) can be accessed via the cloud. All they need is their Smartphone and TabTop. - Retiree, who wants tho be able to stay in touch with friends and family when traveling or at home. Not much different from above, but cost is a greater issue, so less cellular and storage needs. They likely have “down-sized” and may not have a room they can dedicate to a home office. All they need is their Smartphone and TabTop.
- Simplifier, who wants to reduce the number of products they currently use. Today, these might include a smartphone, tablet, laptop and desktop. A TabTop could fulfill the needs currently served by a tablet and laptop/notebook. For many, it would eliminate the need for a notebook/laptop and even a desktop, so all they need is their Smartphone and TabTop.
Conclusion
My take is that the iPad Pro creates a new category and ushers in a new era in computing. It can disrupt several markets by reducing the number of devices needed to two (Smartphone and TabTop). It does cannibalize other markets for Apple (and other competitors), but it is always better to “eat your own Children” than let others do so. What’s your take?
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