Apple’s iPad Debuts… and Disappoints? (NASDAQ:AAPL)

Unless you are living in a closet, you have heard that Apple Inc. (NASDAQ:AAPL) debuted its much-anticipated iPad.  Although, it seems not everyone was impressed.  It could be too much hype, sort of like when the Segway Scooter was unveiled.  Henry Blodget reports to us his thoughts about the iPad.

(Henry Blodget) - It seems fair to say that no gadget in history was as hotly anticipated as the one Apple introduced yesterday.  And although Apple's iPad did impress some observers, many were left murmuring about what might have been.

For months, the rumor mill had churned out all sorts of lovely hallucinations about what the iPad might do.  After seeing the device yesterday, however, many observers concluded that it was basically just a big iPod.  And females the world over wondered whether any women actually work at Apple on account of the first thing they thought of when they heard the name "pad."

But is there a market for the device?  Almost certainly.

The most important aspect of yesterday's launch, in fact, was the iPad's price point: $499.  This puts the device squarely in competition with the cheapest "netbooks," which have been the fastest-growing segment of the computer market.  Some buyers, no doubt, will buy an iPad instead of a netbook, which will allow Apple to finally play in this fast-growing market.

Even more important, a few years down the road, the iPad's power will have increased and its cost will have dropped.  At some point, the price should hit a point where many people decide to buy a couple just to have them around the house--a universal "reader" that takes the place of piles of magazines and books.  When that happens, the iPad could go ballistic, adding another monster revenue stream to the global powerhouse that is Apple.

Blodget’s Full Article