The new iPad (3rd generation) was launched this week at one of Apple’s always-effective marketing events. The new iPad looks great, has some powerful improvements, and will attract huge sales. But the new iPad hardware and software is only a part of Apple’s plan for 2012.
The last words spoken by Tim Cook at the launch event were as follows:
Only Apple could deliver this kind of innovation, in such a beautiful, integrated, and easy-to-use way. It’s what we love to do. It’s what we stand for. And across the year, you’re going to see a lot more of this kind of innovation. We are just getting started.
I take Tim Cook at his word when he says Apple is just getting started. The rest of the plan will be executed by early fall. Apple will roll-out iOS 6 (already in field testing) and Mountain Lion (available to developers now). iCloud will be improved and stabilized by then as well. Read the Tim Cook quotation above once more and you can see that all of these developments clearly are headed in one direction: complete, elegant, and easy to use integration of all Apple hardware devices, including computers, iPad (and iPad’s most important accessory, Apple TV), and iPhone.
Apple is building the integration one piece at a time. An example of the integration already completed is iPhoto for the iPad. Coupled with the iPad hardware, iPhoto is a sleek touch-based application for creating beautiful photos using powerful effects and easily sharing them via photo presentations (called Photo Journals) that display the photos and related data and which are shared with friends via iCloud with the touch of a button.
Further evidence is the newly added ability to re-download movies previously purchased in the iTunes store that Apple rolled out Wednesday. It is actually not completely rolled out because two movie studios (20th Century Fox and Universal Pictures) are not yet included in this feature. But you can bet they will be soon. And the goal here is to allow customers to purchase movies once and access them anywhere anytime forever without having to manage where the data is stored or how to back up the media. Nice.
But gaps in complete integration remain. An example is today’s absence of AirPlay on Macs. AirPlay (coupled with iCloud) is and will be the core feature that actually provides the integration and it must be on all Apple devices to complete the process. And, sure enough, a key feature of this summer’s Mountain Lion release is that it will add AirPlay to the Mac, eliminating this critical gap in the overall integration plan.
All of this integration and software development is, I think, the foundation for an even bigger breakthrough for Apple. Apple’s goal is to deliver to customers, by the end of this calendar year, an always-available media stream including TV, movies, music, and books. Customers will be able to purchase media once and access it anywhere anytime on any (Apple) screen they own without having to manage where the data is stored or how to back up the media. Imagine being able to tell Siri to show Hugo on the TV in the den for the kids, and the Red Wings hockey game on the TV in the living room for dad and his friends. No remote control, no TV channel searching, just speak your wish. And customers will be able to create, edit and publish their own media as well from any device, anywhere.
I believe that this effort will be huge a success for Apple this year, even though it won’t be completed immediately. Apple’s huge cash hoard will allow it to succeed in getting the media deals it will need, once all the Apple technology is in place and deployed. And Apple is the poster child of disruptive businesses. Finally, I think that only Apple has the financial and technical chops to pull something like this off. Simple, elegant software that “just works” is the key and no company on earth does that as well as Apple.
And that is what Tim Cook was saying at the iPad launch event this week.
2012 might be a bad year on the Mayan calendar. But 2012 will be a huge year for Apple.
Update: According to the Wall Street Journal, Fox and Universal movies will be made available shortly in iCloud due to agreements, in process but likely to occur, with HBO. It seems that things are beginning to fall into place.
Disclosure: I am long AAPL.








