If you're not into Ipad2 try this $399

[DenverSteve]

I don't think Apple is upset with anyone. They can't keep up with demand for their products. Apple created, others copy. The iPad is currently responsible for 70% of all new "laptop computer" sales even though it is not a computer. It is great for what it is and will never be a "computer" replacement. It's like a Porsche - don't buy it if you can't afford it and, if you buy it, appreciate it for what it is and not what it's not.

[Perfectlap]

^ not so sure about that. Apple just pulled all non-Apple book sales from their app store and they will only honor existing Google, Amazon,etc. book clients on Itunes.

I think they know a war is coming.

Apple were astoundingly ahead of the pack on the rejection of laptops in favor of tablets for casual tech consumers (overkill for them to buy a laptop with limited battery life to boot) but this is a trend that would have occurred sooner or later. Apple just made it feasible now because the Iphone shared so many of the same features as the type of tablet device that would get people to reject their laptops.
WHen you really look at an Ipad or Samsung or Xoom closely none of it is really ground breaking: touch screens, extended life batteries, wifi, 2G/3G, gps, gyros, accels,powerful chip sets...all existing tech just waiting for one clever group to put it all together. PC vs laptop was just too narrow a choice for too long. Good on Apple for figuring out a third way to get everyone to spend less but since none of it is really proprietary they won't be able to hold onto anything near their current market share forever--ditto for those 50% production margins. Android wouldn't be activating as many smart phones every day as they are if 70% of the market were THAT brand/image loyal. I give it less than two years before tablets are as ubiquitous as a GPS for your car. You'll be able to buy any size tablet for less than price of a used Xbox. everyone will have one at home and each kid in the house will have one in his/her book bag.

[DenverSteve]

True. This technology was developed years ago with the HP, Palm and other PDA's. Apple simply took all of that leaps ahead with the iPod which became the iPad. The iPad is simply an iPod on steroids. I have them all and each has a niche. None is a solve-all tool. I do believe that the iPod should be the invention of the century. Simply amazing.

[Perfectlap]

Also very very lucky timing for Apple. They developed the Ipod in a window where Microsoft were masterminding the opposition. That's like having the rent-a-cops run airport security all over again. The Google boys were still eating pringles in their dorm conjuring up a way to take down Yahoo. Had they been on the scene sooner I'm sure they wouldn't have allowed Apple to go so long with Ipod as the default solution. There would have been a challenge much sooner. Particularly considering how being in the internet business they knew of what was to come in mobile tech. For example look at how long how without any history of building gadgets they were able to take the first T-Mobil Android phone to what it is now. Barely 2 years. Apple did very well only having to worry about Microsoft. But that's not the case anymore.

[DenverSteve]

True. But no one can do anything but admire what Mr. Jobs did with Apple. His company struggled for decades even needing IBM's bailout. Then coming out with industry changing ideas like the iPod and Apple Store at a time (timing is everything) that catapulted Apple into the industry leader it is today. Just watch the fervor that occurs every time Apple announces a new release. Then there's a backorder for the new product almost up until the next release. I don' t think they're worried in the least. Apple Care and the customer service they provide, I believe, is what helps people like me get beyond the prices and go with Apple over the competition. Total package that goes beyond the simple tablet, phone or notebook.

[Perfectlap]

oh they're worried alright. That's their nature. They don't want to become the next Blackberry: A company that got too comfortable with their stranglehold position. They know they were very very lucky to have had a very poorly organized competition at the critical time, an opposition that was fragmented into a dozen uncooperative companies wasting billions in resources coming up with their own bespoke systems. They mastered nothing either on the hardware or software side.
But those companies are getting their acts together now largely thanks to Google and their far more flexible sandbox rules, as we can already we see with Android phones and this latest Samsung tablet. Apple were able to capture all the early adopters for high end phones and tablets. Even though they equal tens of millions they are still the tip of the iceberg of the total market for phones and tablets. At some point economies of scale will kick in and anything that isn't proprietary to Apple, things that other's can't use in their devices, will be a tough sell at these current Apple profit margins. Apple sells a $650 Ipad that costs $250 to make. A $50 Iphone that costs $200 to make. What happens when the Apple product no longer does anything that an other product can't do for the half the price? Even if you sell to an upper middle class consumer who is willing to pay the premium at some point you'll need to maintain that huge tech advantage over the competition to justify those margins. That's the advantage that shrinking by the day. Then what? What new gadget will they invent? As you point out the current apple revolution was built on a single product, the ipod. I think they've pretty much exhausted all the iterations of that invention. Which isn't to say that there isn't plenty of gas left in that tank. This Ipod/tablet/Iphone thing could go on for years but making things that are light/thin/intuitive are no longer solely the territory of Apple.

[tonycarreon]

Originally Posted by DenverSteve

True. But no one can do anything but admire what Mr. Jobs did with Apple. His company struggled for decades even needing IBM's bailout.

wha? IBM didn't "bailout" apple...

Originally Posted by DenverSteve

Then coming out with industry changing ideas like the iPod and Apple Store at a time (timing is everything) that catapulted Apple into the industry leader it is today.

microsoft's still trying to catch-up to that one. it all comes down to how you want things to work. MS tries to work with as many components as it can. Apple works with a select few (pc components) and tailors the experience to that. they control everything from the ground up (and it makes things smoother for the end user IMO).

saw a story the other day about the cash reserves apple is sitting on ($76b in the bank, FYI). according to the story they could buy every major league baseball, football, hockey and basketball team in the US and still have nearly $25b left over.

[DenverSteve]

[QUOTE=tonycarreon]wha? IBM didn't "bailout" apple...

True. My brain freeze. It was Microsoft that invested 150 million when they not doing well.