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Jon on CNBC Talking Tablets

2011-02-07
I Apple reached an all-time high today and the stock price is not the only thing on fire the popularity of the iPhone the iPad simply doesn't seem to be losing steam but is this Apple's best moment as competing devices like the android which does offer more flexibility in many ways come to market will they overtake Apple joining us is jon rettinger editor-in-chief of technobuffalo and i'll expect our strategic analytics senior analysts good to have both of you with us and and if you could Alex start off by saying giving the case for why others like Android could end up being the dominant players I think it's just a numbers game Aaron if we look back at the smartphone market Apple was was the leading vendor to define the new smartphone user experience but then device vendors using Android came in and they had there were more device vendors more devices on the market and so they were quickly able to overtake Apple in terms of volume so it'll be a similar story i think in tablets over time it won't just be one device it'll be multiple devices multiple tablets running android and those will add up and there will be more Android choices for consumers okay then I guess there's a point to be made there when you see a lot of people liking the the smartphone droid experience what's your response John do you think this is a real risk or this time this time being the iPad does Apple really have it locked up you know those numbers and facts are bit misleading when the iphone was released it was released on just one carrier if you look at Android for example you have multiple Android devices on multiple carriers so it's the fact of multiple devices competing against one now at the device like the iPhone releasing on verizon on the tenth iPad which verizon is also committed to carrying there's going to be much higher market penetration for the eye patch already is experiencing upwards of seventy five percent market share apple reported that they sold 14 million iPads compared to the 1 million Samsung Galaxy Tabs our souls not to mention the biggest probably downside of the Google tablets is a google fragmentation in 2010 alone Google really three different versions of the operating system so from a developer standpoint if you have to code for one vertically integrated device like the iPhone or the iPad or you have to support multiple software upgrades on the Android side I think the choice is going to be very clear Alex what's your response to that I mean and do you think that Apple has made enough of a head way through the ipad is just one example that it's going to get in the corporate market because that would clearly help them because people like to have you know the same thing at work as they do at home may just makes it easier you don't have to learn as many things and Apple has been making headway at least with the iPad to corporate America absolutely i think that Apple Apple over the past few years has made tons of headway in corporate first it started out with with the iphone and more and more enterprises being more accepting of Apple moving moving towards Android or I'm sorry moving towards the iPad the BlackBerry PlayBook is is another competitive device that will potentially try to get into this enterprise space as we know blackberry is extremely popular with enterprise and what they'd like to they'd like some of that volume and profit share as well so that the PlayBook will be another contender there as well John what's your point of view in terms of pricing Apple you know historically and a lot and a lot of different products not all of them I guess but a lot of them was able to charge a premium do you think they'll be able to do that because obviously from a stock price perspective even if they remain intensely popular but have to do so by being more competitive on pricing that could be a hit for shareholders absolutely apples pricing policy I think it's speaking for itself when it comes to this number of units that are being moved if you look at the biggest upcoming android competitor the zoom the rumored pricing is just about eight hundred dollars which actually puts it about eighty dollars higher than the highest priced ipad right now and what we're talking about in terms of ipad is still by all intensive purposes almost last generation hardware we are on the dawn of woods expected to be an ipad 2 announcement sometime in the next few months so we may see a slight price drop although i wouldn't count on it from apple all right Alex John thank you very much appreciate it thank you good to have you back all right and it's great to be back and good to see both of you again
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