Five Changes That Apple Must Make to the iPad in Order for it to Succeed

January 27: Blog has been updated to account for the latest announcement from Apple regarding the iPad name and a photo of the device.
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Well, it is official. On January 27th, Apple is set to announce their latest creation...which, assuming everyone has been correct, will be their new tablet PC the "iPad." In true Apple fashion, the combination of their carefully placed media management techniques and the love of all things Apple has brought the hysteria around this upcoming product launch to near hysteria. Of course, no one knows anything about the product itself, but the fact that Apple is about to launch a brand new product line has certainly gotten everyone excited.

So...will the iPad succeed? Will a new device by Apple that singly-handedly opens up an entirely new category of products and solutions that consumers the world-over enjoy?  Or will it be like the recent launch of Google's Nexus One? A good product, but certainly not iconic and with only limited appeal (more on what is good, bad, and indifferent on the Nexus One here). A device that could, should, and might be a winner, but the combination of hubris and mistakes in execution hurt its appeal? I am not talking Apple Newton here...more...well...Nexus One.

Well, without seeing the iPad, it is impossible for me to know for sure. I did postulate on its launch a few weeks ago, but regardless, I do believe the iPad could be a winner if the following five things are done.

1) Focus on the secondary computer market: Rumor has it that the iPad will be priced at around $1000 when it is first launched. While Macbooks have become the choice de jure device for techies everywhere, the fact is, they get away with this price because they are capable of being your primary computer. In my mind, the iPad will never be your main computer, but instead, has the possibility of being a fantastic second device. A device that you use for all sorts of reasons including watching videos, updating Facebook, Twitter, etc. and web browsing. In other words, take the lessens that made netbooks so popular and make the experience better.

2) Price the iPad under $500: It is virtually guaranteed that the iPad will cost around $1000. Frankly, that is way to high to make this product a must-have by a large enough percentage of the market to make a difference. Sure, it will sell...perhaps even a million (probably not)...but in a market where world-wide annual sales are more than 65 million the iPad will be a drop in the bucket. But it doesn't have to be that way. Price this device at $500 and I guarantee millions will be sold.

3) Embed the iPad with 4G wireless date: The iPad is rumored to include 3G services from one of the major wireless carriers, but that is not enough. 3G works pretty well, and has good coverage, but it is simply not capable enough to supply the download speeds of the multi-media / video capabilities that would differentiate a tablet in the market. Equally important, to take advantage of the 3G service, you will have to sign-up for an annual contract at ~ $60 / month. So, in addition to the $1000 device costs, you will be looking at another ~$700 per year just to use it! So where does 4G make a difference? Well, first it solves the bandwidth problem by supplying download speeds 3 - 5 times higher and second, the pricing model for 4G is significantly different (at least from Clearwire)...generally offering per-day and no contract options.

4) Run the iPhone OS: Admittedly this is a bit of techno-babble, but the fact is, the iPhone is incredibly easy to operate. So easy in fact, that millions of relatively non-technical individuals use it every day. A Mac OS? Well, not so easy. I am not saying it is impossible to use, but for people used to window-based PCs, the difference is significant. If the iPad used the iPhone OS a lot of those hassles would disappear and the potential market for the iSlate would significantly grow.

5) Include a keyboard: Admittedly this sounds counter-intuitive, but first of all, why can't a tablet be a tablet with a keyboard? After all, the biggest complaint about a tablet is its form-factor and associated user experience. Sure, it is awesome to watch a video, but type an email? Write a document? Or this blog? Not so easy. The iPad could solve a lot of these issues if it simply included in the package a keyboard. Sure, most people wouldn't use it for a lot of what the iPad is to be good (video), but when it came to writing-intensive activities a keyboard is the difference. And for a cost of $10 it seems worth it. Heck, including it would likely be hailed as another example of Jobs and his brilliance!

Let me know what you think of this list and any other ideas I missed. Of course, the list above includes some very "non-Apple" things....so the probability of them happening is very small. That being said, some of the technorati also have their own misgivings and recommendations, so perhaps my ideas are not so crazy after all.