January 27th, 2010

Apple’s iPad has been unveiled.  Up until now the tablet computer from Cupertino’s greatest company has been surrounded by hype.  The company’s stock price has dropped, then soared upon the unveiling of the newest product.

The unit will sell start selling at $499 – which is a lot of money, but fits within an affordable range when you look at the prices of other Apple products.  For instance, an iPhone through AT&T costs $449 if you don’t qualify for the upgrade.  If the iPad hits the $600 price point, $50 more can get you quite a product.

That being said, Apple has been working on tablet computers on and off since the 1980′s.  Furthermore, tablets only make up 1% of the market, even though they have been around for decades.

Many anticipated that Apple’s stock would soar on the news of the iPad. However, the stock price first declined and then soared.  Perhaps investors were a little nervous initially about how technology buffs saw the new product, and then reacted to widely felt acceptance of the iPad.

The product is 10 inches and boasts a 10 hour battery life. The true test will be what people think of the product once it’s available for sale.  Will the iPad be nothing more than a big iPhone? If so, the popularity could dwindle and we could see some backlash.

However, there’s also the possibility that the iPad will revolutionize the computing industry.  If that’s the case, then expect stock prices to keep stable or increase over time.

Source:

CNN Money