Technology & Business

Well, my dear XI Fly citiXIns, Steve Jobs has spoken and the word is in…

Apple is offering rubber cases to anyone who has purchased the new iPhone 4 and are experiencing signal loss due to its antenna placement.

When customers and the media brought the antenna issue to Apple’s attention shortly after its release, they were met with a swift “well, you’re holding it the wrong way” antidote.  Adding to this “solution,” Apple also placed blame on the iPhone’s only service provider, AT&T.  However it wasn’t until Tuesday that Apple found itself scrambling when the influential and consumer-friendly magazine, Consumer Reports, completed testing on the new Smartphone that did not meet their recommendations. Apple knew then that they had to resolve this issue promptly, especially when Consumer Reports suggested that iPhone 4 owners use duct tape to alleviate its reception issues.  Collectively Apple’s elite gasped, and somewhere Jobs was completely mortified at the mere thought and visual of his beloved iPhone encased in duct tape.  (Hey!  Duct tape fixes everything, right?)

So, Apple’s CEO ordered a press conference to be given this morning, where many had hoped he would offer some sort of apology to consumers on Apple’s behalf; however, his words were more half-hearted than heartfelt as he tried to appease the public and the media.

“We’re not perfect.  Phones aren’t perfect either, but we want to make all of our users happy…It’s hard to escape the conclusion that there is a problem, but that problem is affecting a very small percentage of our users,” Jobs told reporters.  He also cited that only 0.55% of new iPhone users had called Apple’s tech support, and only 1% more consumers had dropped calls reported to AT&T than its predecessor, the iPhone 3GS.

Jobs speech came after Apple’s opening bit of Jonathan Mann’s “The iPhone 4 Antenna Song” which includes the lyrics: “If you don’t want an iPhone 4 don’t buy it.  If you bought one and you don’t like it, bring it back…but you know you won’t.”  A jab seemingly directed towards the media’s overreaction to the antenna and reception issue.

Apple is now offering a free rubber “bumper” case, retailed at $30, to any customers experiencing these reception issues, or a refund will be given to those who have already purchase the case.  Yet, there was no promise of Apple fixing the hardware and design flaw, otherwise stating that it could possibly ruin the phone’s design aesthetic.

Apple’s To-Do List: Blame customers – check.  Blame AT&T – check.  Hope that the problem goes away – check.  Plan Friday press conference – check.  Make excuses – check.  Dare anyone to return the iPhone 4 – check.  Offer refund and free rubber case – check.  Actually fix hardware and reception issues…

Although Apple has sold 3 million phones in the past 3 weeks it has been on the shelves, Apple has been shifted on its pedestal some.  No, every phone is not perfect, and neither is Apple.  The iPhone is still the leading Smartphone on the market right now, and it will more than likely remain at that number one spot.  However, Apple rushing production on the next big thing in their repertoire will not keep them there.

Apple is a company that has become synonymous with perfected technology, grand style & production, great business savvy, and exemplary products.  Apple does not want to become known as some mediocre company that consumers cannot trust to repair their hardware and design defects (because technology will ALWAYS encounter mistakes and missteps). Nor do they want to become that company who points the finger at everyone and everything else with boastful arrogance.  In the future, Apple must take responsibility for their flaws or shield themselves better from these small blemishes and glitches before they begin to snowball and they indeed become THAT company.

Jobs and Apple should have given a humbling apology, offered a suitable solution that resolves the problem permanently, and began working feverishly on the iPhone 4GS.  But, so much for wishful thinking…

**I only have one question for Apple though… In addition to this new rubber “bumper,” will I still be able to showcase my style with a colorful pink and purple ifrogz case too?**

It seems more minorities are stepping out on faith and building their own companies, but for some it has been a difficult feat due to the current state of our economy.

From Wall Street Journal: The number of minority-owned businesses (pictured left: Carol’s Daughter owned by black business owner, Lisa Price) grew nearly 46% between 2002 and 2007, more than twice the rate of all U.S. businesses, according to a new U.S. Census Bureau’s survey of business owners.

The survey, taken every five years and closely watched by industry groups, economists and public policy experts, also showed that companies owned by minorities tend to be smaller and account for a relatively tiny portion of all U.S. companies.

“We must continue to close this gap,” said David Hinson, national director of the Minority Business Development Agency in the U.S. Department of Commerce. While the Census snapshot was for 2007 — before the financial crisis hit — Mr. Hinson called it “unacceptable, particularly during an economic crisis that disproportionately affects the minority business community, to have this ongoing disparity.”

Still, Mr. Hinson said he was encouraged by data showing that minority companies have been hiring at a faster rate than non-minority companies — up 27% over the five years compared with 2.3% growth for white-owned companies, according to the Census numbers.

The Census Bureau reported that the number of black-owned businesses grew 61% to 1.9 million; the number of Hispanic-owned businesses grew by 44% to 2.3 million; and the number of Asian-owned businesses grew by 41% to 1.6 million. The number of white-owned businesses rose 14% to 22.6 million over the same period.

Revenues for minority-owned businesses in 2007 averaged $179,000, a number Mr. Hinson called “paltry” compared with the $490,000 average for non-minority firms. Black-owned businesses saw average revenues of $72,000 in 2007, down from $74,000 in 2002, he said.

The total revenues for all minority owned businesses rose 55.6% over the five year period to $1 trillion in 2007, a small number compared with the $30.2 trillion total for all U.S. companies, the report said.

At the National Black Chamber of Commerce, President and CEO Harry Alford said that focusing on the size of minority-owned businesses is looking at the glass half empty instead of half full. “The overwhelming effect is there are more dollars and more businesses out there,” he said.

But he said that black-owned companies are facing particular problems getting traditional bank loans since the financial crisis – a period that is not reflected in the Census report.

“People of color have a harder time accessing capital,” said Betsy Zeidman, director of the Center for Emerging Domestic Markets at the Milken Institute. The credit crunch has restricted lending for businesses across the board, evidence suggests minorities have been hit harder, partly because their businesses tend to be smaller, she said.

Mr. Hinson said that there’s another reason: Many minorities have used their homes as collateral for their businesses. “As home-equity values dropped, so went their collateral,” he said.

From The Black Report: LOS ANGELES — More than one million Facebook fans love being black and they are causing a web-frenzy over a popular Facebook page. On Sunday, June 27, the fans hit the one million mark.

The ilovebeingblack fan page on Facebook has reignited the Black is Beautiful movement like a virtual firestorm, taking its message of empowerment to the web. The site is devoted to cultural awareness through fashion, capturing the hearts of 1,001,010 Facebook fans worldwide.  With its I love being Black apparel line, the company brings a fresh meaning to James Brown’s “I’m Black and I’m Proud” anthem for a post-Civil Rights generation. The company’s positive motif is part of a larger movement to inspire and uplift the Black community.

“I Love Being Black apparel is a reminder to the community – and the world – that yeah, I DO love being Black,” said Founder/CEO Kumi Rauf. “I wanted to establish an outlet to combat self-hatred and negativity from inside and outside of our community, and to do it with style.” Rauf established the company in 2003 as an outgrowth of racial tension while he was a student at UC Santa Barbara and as a social media platform to encourage positive relations between Blacks. For greater accessibility, ilovebeingblack.com is also in the early development stages of creating mobile applications for Android, Blackberry and iPhone users. “With this page, and soon our mobile applications, I want to bring Black people together to start a dialogue on a variety of topics and to show our love for our culture.” ilovebeingblack.com products are sold online and at marketplaces, festivals, expos and trade shows. Celebrities such as Kimberly Elise, Malcolm Jamal-Warner, Too $hort, among others can be spotted in I Love Being Black apparel.

About ilovebeingblack.com: ilovebeingblack.com provides a social media platform for web-savvy Blacks to dialogue about various topics. CEO/Founder, Kumi Rauf, is the recipient of the 2007 Urban League Top 40 Under 40 award. ilovebeingblack.com makes many charitable contributions to organization such as: Sistas Against Drugs & Alcohol Abuse, The Los Angeles Black Women’s Health Conference, The National Society of Black Engineers, The Urban League, among others. 

Become a fan at facebook.com/lovebeingblack or visit ilovebeingblack.com for more information.

Don’t you just love when Fashion meets Technology and instant mobility?!

From Racked.com: iPhone savvy shoppers might want to gird their bank accounts, as the Lustr iPhone app !. Lustr is like Foursquare meets a sample sale—a massive location-based sample sale of 3,500 brands in 2000 stores in New York City.

It works like this, let’s say you love Bird, you’ve pre-set your Lustr preferences on your iPhone, and you’ve just exited the L Train at the Bedford stop on your way to brunch. Lustr knows that you’re now in the ‘burg and immediately alerts you to let you know Bird has markdowns on Alexander Wang and Vena Cava. Pretty cool.

Lustr is also privy to other special events like trunk shows, in-store events, “whisper-sales” and exclusive to Lustr deals. Depending on how badly users want to shop, they can also personalize their notification radiuses to, say, a few blocks or half a mile. Lustr is a free download on iTunes, so you can save a few dollars here to use for your shopping later.

Image Source: Lustr/Facebook

From Stylelist: Online sample sales just got more dangerous.

Now, you can access Rue La La’s sales on every mobile device, and share your coveted invite-only status with anyone in fist bump range.

The company has launched apps for the iPhone and iPad, joining their mobile site — m.ruelala.com — in letting fans make sure they never miss out on an online sample sale.

The iPhone app contains ‘bump’ technology, meaning that you can knock phones to invite friends to join the shopping site, and download the app themselves.

“Rue La La is excited to deliver complete shopping mobility to our members allowing them to experience the thrill of accessing their favorite brands when our boutiques open at 11:00 a.m. no matter where they are,” explains Ben Fischman, CEO, Rue La La. “We have answered their call of urgency by providing the unparalleled shopping experience found from their desktops with the most popular mobile devices, including iPhone, iPad, Blackberry and Android. Rue La La members never have to miss another boutique.”

Image Source: iPhone App Store

From the Young Black Professional’s Guide – Networking isn’t just about shoving your business card into as many hands as possible. It’s not about going on a free for all for everyone else’s either. It’s about meeting new people in a relaxed setting that could potentially lead to a business opportunity somewhere down the line. Here are a few tips on how to navigate the sometimes uncertain waters of networking with class and finesse.

#1 – Do your Prework. The majority of events nowadays publish a list of whogoing to be in attendance. Take the time to go over this list several times before the function and identify three people who you do not know but would like to meet. This will allow you to enter the function focused on networking instead of wandering aimlessly through the venue. Also, you can meet people who are connected to the person you are looking for by paying attention to their company name and location. If you meet someone from the same company or city, it is a built-in ice-breaker and can help get the conversation off the ground. BONUS TIP: Check the registration list one last time before you leave to travel to the event. Last minute registrations are the norm and you can learn about some intriguing last minute additions as well. #2 – Carry too many business cards. This is a basic key, but one that is forgotten time after time. Make sure you have more than enough business cards to hand out. Don’t run out. Also, if you are technologically inclined, there are online business cards available (such as Snapdat) where you can text or email the people you are meeting your v-card right there on the spot. Very handy. Personally speaking, I would come with both options. #3 – Take Notes. Don’t be afraid to whip out a pen and make some notes on a person’s business card that you just met. This will help you tremendously when you get home and attempt to review the people you met and how they might benefit your career and business.

#4 – Arrive early. I think this is taken for granted many times, but if you are the first one at an event you could get some quality one on one time with an important attendee. Also, as the event gets more crowded, pure networking conversations become more difficult and eventually people are more interested in their next stop or preparing for a meal. Many times people will come straight from work to miss rush hour and leave as soon as traffic eases up. If you wait until midway to the function, you will have missed an entire segment of people.

#5 – Make sure you follow up. The handwritten note is an endangered species. Use this to your benefit. If you met a very worthwhile connection, be sure to put a thank you note in the mail at least 24 hours after the function. For other people you met, an emailed thanks will suffice. The key is to be timely and somehow make the note personal. This can be done by including a portion of the discussion you and that person had at the event in the note. BONUS TIP: Log on to your Linkedin account and connect online with the new people you met. This will complete the full networking process and make it easier for you to learn more about them and stay in touch.

Emile Cambry is a graduate of the University of Chicago where he holds a degree in Economics and has been a columnist with The Chicago Defender and Upscale Magazine.  Emile has an MBA from Northwestern Universities, Kellogg School of Management. Emile is currently an Adjunct Professor at Northwestern College,  Keller Graduate School of Management, and North Park University teaching undergraduate and graduate  courses in Entrepreneurship, Financial Accounting, Managerial Accounting, and Microeconomics.  You can follow him on twitter @EmileCambry.

Steve Jobs is a genius not just for being an innovator, but for the subtle, yet enticing ways his phonemes affect our cognition. Apple has created, transformed, and is responsible for the creative destruction of music, movies,and mobile phones; traditional industries where Apple had minimal experience and these industries are  characterized by tremendous competition and razor-thin (and decreasing) margins. Despite this, Apple has revived those industries while increasing market share of its core computing business. Apple is rarely first to market when introducing new products or technology, but is the undisputed champion in intimately understanding the user. They don’t focus on being the first, they focus on being the best. They control the user experience and create a platform for external innovation with iTunes and the App store. Apple’s singular focus of owning the customer experience differentiates Apple from their competitors. This business model was almost their downfall over ten years ago, when conventional wisdom of creating software and hardware was a no-no. Doing both was considered a surefire path to failure because you couldn’t capitalize on the economies of scale and they were almost always premium priced to competitors. Apple excels at creating a superior product and service design built upon user observation, research, and scenario planning. They generate substantial buzz every time Steve Jobs plans to hit the stage, and over time, their products are integrated into the ecology of our daily lives. Apple is more concerned with how the technology and design might be reused in the future, which encourages cross-pollination and a recycling of ideas, talent, and engineering.

Going against the grain and having a home run product in the iPod, has now transformed Apple into a $50 billion company (annualized from their quarterly earnings report). From the most recent quarterly report, they have posted revenue of $16 billion, on $3.5 billion profit, with gross margins up to 40.9% from 37.9% this time a year ago. The company has sold 8.7 million iPhones during the last quarter, a 100% growth over the year-ago quarter. The iPhone has cannibalized the iPod to an extent, with only 21 million iPods sold during the quarter, an 8% decline from the year ago quarter. But, the iTouch has had tremendous growth. During Steve Jobs’ iPad unveiling last week, he revealed  Apple had sold 75 million iPhones and iPod touches so far. Apple sold 42.5 million iPhones through the end of 2009, which could have reached around 44 million by the end of January. This intimates iPod touch sales could be up to 31 million by the end of January.

Despite all of the success and the Apple resurgence, Apple deeply understands they do not have the monopoly of good ideas. They enabled third-party developers to create end-use applications for mobile computing and communication devices. What many people (and pundits) forget, Apple was very reluctant to open up to this development platform. They shifted the risk from their development teams, to third-parties who could narrowly focus on industry verticals and the needs of the end consumer. In many ways, they have been criticized for not being overwhelmingly “open” but unless a competitor forces them to alter their stance, there’s no reason to. Why open up to Google Voice when  controlling end users’ contacts are extremely valuable?

With the launch of the iPad, a hybrid of an iPhone and a MacBook, the release is less about the hardware, and more about the software. What is key to this is the strengthening of Apple’s software distribution channel, which works on all of their platforms (MacBook, iPhone, and iPad), synchronized, and lightweight enough with an ecosystem of solutions to attack every imaginable industry vertical and use case. All of these apps represent a business risk to once size fits all software providers, which makes the consumer better off in the end, by substantially lowering barriers to entry. Why do I need all of these expensive (and clunky) desktop applications, when I could have all of my data in the cloud? This also puts Apple on a collision course with the Google Operating System (GoogleOS).  Hidden in all of the stories/reports of Apple has created a new processor, the A4 (customized ARM A9 processor) which signifies Apple is in control of every aspect of the device, signaling it will be coming soon to the iPhone. This means a faster, more seamless experience, with extended battery life, which will make the software much more effective.

We must remember the iPod launched without a music store and the iPhone was born without the App store. Imagine the power of a product launch with these embedded switching costs, a ready-to-go iPad SDK, and an installed base of customers are familiar with using the iPhone/iTouch. The iPad will be the glue with all of their product lines. It will make it easier for the user to switch between Apple products and will influence how we use them. With cross-synching of applications and software across all Apple product lines, the switching costs are ever increasing with increased usage. The iPad is intended for leisure web browsing, listening to music, watching movies, reading books, creating simple documents on the go, with much more robustness and functionality you can find on your average Netbook. The added component is the ability for developers to create iPad-only applications which could mark the new era in mobile computing. What we may see is the emergence of a hybrid computing device combining the best of graphics and power, while in a compact, yet mobile device. When I first heard the news of a $499 initial price point and a 10-hour battery life, for something this robust, I knew it was a game changer (it was my first tweet about the iPad, minutes after the announcement).

With this launch, the iPad effectively:

• Transitioned a movement from a GUI and QWERTY keyboard (Touch is the new black)
• Increased convergence of Phone, Web, TV, applications, software (not bloated web or desktop apps)
• Enhanced opportunities for traditional publishers to adopt sustainable business models in a digital marketplace

Interestingly enough, Apple has transcended the innovation process from customer insight to Apple telling us how we should operate, again contradicting conventional wisdom. In business school, we are taught to learn from customer insights, focus groups, and trial runs, but the most innovative companies do the exact opposite. Steve Jobs has mentioned several times he doesn’t believe in market research the way we are taught in business school. Nintendo’s senior marketing director once stated (in regards to the Wii) “We don’t use consumer focus groups. We got a lot of feedback from developers in the industry.” Henry Ford once said “If I had given them what they wanted, it would have been a faster horse.”  Imagine if Apple had applied conventional customer insight when developing an MP3 player. It may not have been a game changer.  Helmut Krone once stated “I always give them what they want, but never what they expect.” What’s missing from this iPad launch, and what I expect to come shortly after the launch, is an innovative business model changing the incentive structure for content creators, content distributors, and consumers to alter their way of doing things. This behavioral change in the value chain is at the core of Apple’s strategy, and could be the underlying story as to whether the iPad is as successful as Apple projects.

Despite my overwhelming support, the iPad launch has been met with many skeptics asking why we need another device, why we need a large iPhone, and where is the innovation. This is very similar to some of the claims were made about the iPod back in 2001.

Here’s some quotes from different, leading pundits:

“I still can’t believe this! All this hype for something so rediculous!….I want something new! I want them to think differently! Why oh why would they do this?! It’s so wrong! It’s so stupid!”

“All that hype for an MP3 player? Break-thru digital device? The Reality Distortion Field is starting to warp Steve’s mind if he thinks for one second that this thing is gonna take off.

“Not revolutionary. Big capacity MP3 players already exist. With Creative Labs’ entrance into the firewire arena, future nomads will have similar specs and better prices”

“A bad fit. This product is outside Apple’s core competency-computing devices. When many are calling for a pda, they release an MP3 player”

“Without a future. This Christmas you will see MP3 players be a commodity. The real money is in DRM and distribution. If Apple were smart they would be focusing on high gross revenue from services rather than a playback device.”

(via)

Other critics have slammed the launch because of the lack of additional features and functionality of the device, such as Flash, USB ports, HDMI support, AT&T connectivity, mutlitasking, cameras, touch keyboard, not widescreen (reported 4:3 ratio), and the name of the device. These are necessary features, but the goal for Apple was to target the lowest price point (and battery life). This  was immediately reflective in their stock price immediately after Steve Jobs made the announcement. We must remember this first generation is targeted towards the 75 million iPhone/iTouch users who are familiar with the Apple touch interface, and don’t require a learning curve. They are early adopters, more price inelastic, and more than likely, own several other Apple products, so they can serve as evangelists of the opportunity to use multiple Apple devices. This is at the core of what Apple is selling with this opportunity. Expect the next generations to be lower priced (can we say $100 computer?), with many of the features and functionality Apple’s iPad critics want, as long as it doesn’t interfere with Apple’s ability to maximize revenue. Personally, I’ll wait another generation or two and let Apple fix the inevitable bugs, features, content distribution deals, e-ink display option, and price drops. Right now, the concept car looks good.

This is not a Kindle-killer, but will stunt the Kindle’s growth. Kindle does one thing very well, makes it easy to read books. Apple is more focused on the experience. Purists will appreciate the Kindle, but it represents a relative minority compared to Apple’s target market. The Kindle can’t compete with Apple by offering a robust app store, because the Kindle is far too slow at the moment, and foreseeable future. If you ever see a demo of the Kindle, the ease at which you could read magazines and newspapers pales in comparison to the iPad. The iPad will enable more interactivity with content, and will blur the line between what and how we read, see, and interact. In many ways, this could change how kids grow up.

At a price point of $100, can you imagine how many of these touchscreen devices will be in classrooms, homes, family trips, and in all of our businesses?

I can…..

Note: I normally pride myself in not being an Apple or Google fanboy. I normally reserve judgment on the direct value of their products, and less on the potential to be a game changer. I wasn’t too fond of the MacBook Air when it was released, and I have continually had a lukewarn response to most of Google’s new products and services. Lately, my tone has changed, and I am starting to see an effective strategy coming from the tech titans. It’s encouraging and exciting. The iPad is the latest launch has generated more buzz than Tiger Woods’ affair. Within hours of the launch, there were several million links for a Google search, and for many early adopters, techies, and fanboys, we were frozen during Steve Jobs captivating release.

I am an electronics JUNKIE!  And Apple over the past 5 years has been my drug of choice.  My credit cards are a testament to that addiction, lol.   Currently, I am about 75% “apple-bot.” After receiving a Dell laptop from my parents as a gift a year ago, it’s the only major piece of technology that’s not apart of my Apple family.  Plans to change that are in the works as we speak.

I have visions of Mac books, iPhones syncing and iPod blasting in Exclusivity, Inc.’s offices based in NYC this summer . And the iPad will be my newest addition to my Apple family.

The iPad falls between a laptop and smartphone, according to Apple, with the device capable of doing many of the same things an iPhone can but on a larger, 9.7-inch LCD screen. The tablet is a half-inch thick, weighs 1.5 pounds, and comes in 16GB, 32GB, and 64GB capacities. *drools*

The 16GB model starts at $499, with the 32GB iPad available for $599 and the 64GB configuration costing $699. Those models will include Wi-Fi connectivity; Apple will also offer 3G-equipped iPads for $130 more.

The New York Times

SAN FRANCISCO — Steven P. Jobs has finally introduced Apple’s new tablet computer, called the iPad.

The question now is whether regular consumers will buy the iPhone-like device, which is priced at $499 at the entry level and can cost as much as $829.

Mr. Jobs, appearing energized but thin, a result of his continuing health difficulties, unveiled the iPad at a press event here on Wednesday morning. Its features and specifications, once the stuff of Internet myth, are now sharply in focus: The half-inch thick, 1.5-pound device will feature a 9.7-inch multitouch screen and is powered by a custom Apple microchip, called the A4. The iPad will have the same operating system as the iPhone and access to its 140,000 applications.

The price of the device will be $499 for the most basic model, with a Wi-Fi wireless connection. More expensive models will be offered with more memory and with 3G wireless access from AT&T, which will charge up to $30 for an unlimited monthly data plan.

Wi-Fi-only versions of the device will be available in March, Apple said, with the more expensive 3G models coming 30 days after that.

The most expensive models, with 64 gigabytes of memory and 3G connectivity, will cost $829.

However, the device does not have a camera and lacks the ability to make phone calls. It is not able to work with the ubiquitous Flash software that runs many Web sites. Apple is selling accessories that include a stand and a keyboard.

Mr. Jobs positioned the iPad as a device that is between a laptop and a smartphone, but which performs certain functions better than either of them, like browsing the Web, reading e-books and playing video.

The iPad “is so much more intimate than a laptop, and it’s so much more capable than a smartphone with its gorgeous screen,” Mr. Jobs crowed. “It’s phenomenal to hold the Internet in your hands.”

Mr. Jobs also dismissed netbook computers, another scaled-down device that seeks to fill a limited role. “Netbooks aren’t better at anything,” he said.

But perhaps the most significant iPad application was its own, called iBooks, an electronic bookstore that turns the iPad into a direct competitor to Amazon’s Kindle. Apple said it would sell books in the open ePub format. That conceivably means that e-books sold by Apple would also run on other devices that support ePub, like the Sony Reader and Barnes & Noble’s Nook.

Mr. Jobs said Apple has entered relationships with five major publishers — Hachette, Penguin, HarperCollins, Simon & Schuster and Macmillan — and was eager to establish relationships with others, including textbook publishers.

The announcement puts Apple on a collision course with Amazon. Mr. Jobs credited Amazon with pioneering the category with the Kindle, but said “we are going to stand on their shoulders and go a little bit farther.”

Gerry Purdy, an independent analyst who keeps a close eye on the e-reader industry, said, “Reading a book on an iPad isn’t necessarily going to be that much better — a whole lot better; it will still be in black and white. The Kindle still represents a good vehicle for people who only want an e-reader.”

He addeD: “Right now, it will have some effect on the Kindle market but it won’t be gigantic. There will still be people who want to buy the Kindles or the Nooks.”

Scott Forstall, an Apple senior vice president, said that developers can modify their apps to take advantage of the large touch-screen display, just as Apple did with its calendar, iTunes, e-mail and YouTube apps. The iPhone programming tools for developers will be enhanced to support development of the iPad, and the new tools will be released immediately.

“We think it’s going to be a whole other gold rush for developers as they build apps for the iPad,” Mr. Forstall said.

Among the partners at the San Francisco event that showed off new software compatible with the iPad: Gameloft, a game developer, which demonstrated a first-person shooter game on the iPad; Electronic Arts and The New York Times.

Apple has been working on such a tablet computer for more than a decade, according to several former employees. But early prototypes, which used PC microchips, quickly drained batteries, and Apple executives could never figure out how or why people would want to use such a device, which lacks a traditional keyboard and computer mouse.

Other companies, like Microsoft, have also sold tablet computers for years, but the category has never caught on with consumers.

But advances in technology have since made tablets more practical. Battery technology has improved, and the wide availability of 3G networks and Wi-Fi now allow such devices to remain tethered to the Web at all times.

Traditional “qwerty” keyboards have also, to many people, become expendable. In 2005, Apple acquired Fingerworks, a company founded by two researchers at the University of Delaware to develop computer interfaces based on gestures. Their work has been integrated into the iPhone and now, the iPad.

In 2008, Apple acquired a semiconductor company, called P.A. Semi. That group is responsible for the development of the A4 chip in the iPad.

The remarkable success of the iPhone and its cousin, the iPod Touch, have also shown a path forward for tablets. People have been willing to pay to customize those devices with a large repertoire of third-party tools, called applications, turning them into video game machines, compasses, city guides and e-book readers.

There are now more than 100,000 applications for the iPhone and iPod Touch, and they are expected to generate $1.4 billion in revenue in 2010, according to an analysis by Piper Jaffray.