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= How the iPad Will Change Mobile Computing =

When Apple unveiled the iPad last week, most everyone saw the device as an update to the tablet—a mobile computing form factor than has been around for nearly 20 years. The device is, in a sense, a more consumer-friendly version of the tablets we've been seeing for the past two decades, but the iPad will have a much more far-reaching impact on the market than its competitors. With the iPad, Apple has introduced a completely new portable computing model. The device clearly works well in tablet mode. However, in that mode, the iPad is best for accessing and viewing content. And contrary to what Steve Jobs says about the virtual keyboard being great for text input, it doesn't seem likely that people will use it for too extended a period. But three pieces of technology tied to the device help the iPad deliver on its computing potential. The first is Bluetooth—Phil Schiller, Apple's executive VP of marketing, told me that the iPad works with a Bluetooth keyboard. Second is the slick keyboard dock that lets users do real work on this device. Third is the introduction of iWork for the iPad. Apple clearly wanted to show people from the start that the iPad is a great productivity device. This is more than just a newfangled tablet—it's a new approach to mobile computing. The iPad poses threats to competitors on a couple of other fronts. The biggest is the fact that Apple uses its own processor for the device. That means no Intel tax in the bill of materials. Apple also owns the OS, UI, and app SDK. I suspect that even with the cost of screens and memory, Apple is still able to get margins of over 20 percent for the $499 version of the iPad because of this vertical integration of Apple IP. On the other hand, any competitor building a similar device would have much smaller margins to work with if it wanted to stay competitive with that sub-$500 price point. Apple is also able to tap into its rich ecosystem of 140,000 or so apps, giving it additional functionality from the start. At the very least, it puts the company two years ahead of thos attempting to create competitive products with similar ecosystems. In the iPad's version of mobile computing, the screen is the star. It delivers the full Internet and all manner of applications that can be viewed and accessed in tablet mode. The device can also be transformed into a serious productivity tool with the addition of a mobile keyboard. The iPad has the potential to upend the entire mobile computing paradigm as we know it. I predict that the iPad will really shake up the competition and hurt the netbook business in the long run. The competition will really struggle to create devices that are equally unique and competitive. Sure, they'll create similar designs, but Apple's ability to deliver the full package of hardware, software, apps, and services all tied together, is the company's real advantage. And with iPads starting at $499, it will be much easier for Apple to push a new mobile computing agenda that goes well beyond the interest of enthusiasts. The iPad will tap into the mobile computing needs of the public at large.