Is the iPad expensive? Not when you look at how much you can do with it, and then do the math…

I love tech fanboys. If there is anything popular or new, their initial response is either to praise it to the heavens or to tear it down for what it doesn’t do. And this past week end we saw the best case study that I have seen in recent memory: the iPad. Apple’s new tablet computing thingeee has brought both sides of the tech continuum out of the woodwork and the comments and hyperbole on both sides have been… well, impressive.

Depending on where you go on the Internet the iPad will either revolutionize the way we use computers (throw away your mouse and keyboard NOW, people, to really get ahead of the curve) or is a crippled device that is overpriced and fails in almost every way (Oh, sorry, that’s “EPIC FAIL”).

I lean more towards the former, just because I’m an optimist. I think the iPad is great for what it IS, but it’s not the best thing that ever happened, ever. After using it for a coupled of days it has enhanced my life and made me more productive, and so I think it was worth buying. I expected what I was sold, and I got more than I hoped.

Not to sound like a fanboy, one thing that the critics claim that grates on my is the device is overpriced for what you get, compared to a netbook. Well, that is the wrong comparison, in my opinion. You need to look at usage patterns and the experience that the device provides – it’s very much an apples vs. oranges comparison. So here’s a quick “shopping list” that I pulled together that compares the iPad against other devices (plural) appropriately.

(This list is focused on USAGE, not functionality. YES, I know the Kindle has a longer-lasting battery, I get it – for most people that is a nice to have, not a must-have… power outlets are pretty ubiquitous. “But, but, it doesn’t do flash! It doesn’t multitask!” Well, yeah. The second is coming, and the first is slightly annoying – until all major sites stop using flash and use HTML 5 – which I think will happen, and soon…)

WHAT YOU CAN DO AND WHAT DOES IT COST:

The iPad: Entry level version, $499. It does a lot of stuff that a lot of other devices do (see below).

The other devices:

Netbook. The obvious one, first. The average price is $250, so let’s use that.

Nintendo DS or a PSP. Yes, the iPad is a great portable gaming system, with a screen that beats both these systems, hands down. The average is $170, so let’s use that. And the games are cheaper for the iPad.
Digital Photo Frame. The iPad has a “screen saver” that works as a great digital photo frame. Comparable frames of that size cost $150, so that’s the price I’ll use in my math.

Portable DVD player. A flat-screen DVD player costs $140-160 bucks, and with comparable screens. Yes, the iPad doesn’t play DVDs, but software to covert movies to a format that can play on the iPad is available, for free, for both Windows and OS X. And if that’s too complicated, users can buy movies in one click on the itunes store. Let’s pin this one at $140.

An iPod. The iPad works as a pretty damn good iPod, better than the Shuffle but in some ways not as comparable as the iPod Touch or the Nano (you can’t shoot video like you can with the Nano, but the screen is bigger than the iPod Touch). Let’s split the difference and say $100.

A Kindle. Yes, the Kindle has the e-ink technology, which is more usable in bright sunlight – but how often do you read in that environment? I’d say… rarely. The entry level Kindle is $259.

A streaming Netflix box. Yes, you can stream all your Netflix movies thanks to a new (and free) app. The Roku entry-level version costs $80, and even though you need to buy an extra accessory to output video from the iPad, think it’s fair to use the $80 price.

The Experience. I can’t pin a price on this one, but as a user experience architect, I consider the design of the devise – both the software and the industrial design of the hardware – to be absolutely vital to success. I would say that this one is “priceless” but let’s be generous and say that the iPad’s UI and hardware is worth about $50.

The bearing cost. I want to factor in the “convergence cost” – imagine owning, maintaing, and carrying around all the above every day. I’d go nuts if I had to do that. I’d say being able to do all the stuff I detailed in all the devices above in one singe device is worth $50 – it is to me, at least.

And the rest… The iPad is a great notebook, portable storage device, comic-book reader, board game… as they say, whatever the use case you may have, odds are “there’s an app for that.” I won’t assign a value to this, except to round up at the end.

The Total

So, how does it look? The total of all I have detailed above, rounding up? $1200. So, is the iPad a great deal, at the entry level price of $500? ABSOLUTELY. Is it making my, and many peoples lives better and easier? I would say so.

And when you realize that, adjusted for inflation, the iPad is the cheapest device that the (notoriously overpricing) Apple has ever sold? Well, it’s an even better deal.

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