The iPad in Retail: All Bark and No Bite?

A few weeks ago, I explained some ways in which the iPad could be used to revolutionize the retail industry, specifically in the way it can be used to boost sales associates' knowledge and overall usefulness. However, as we've seen in recent weeks with the iPhone 4, Apple is not infallible, and its products do contain their faults, which could prevent it from becoming a player in the retail business space. So this post will be somewhere between a reality check for Apple fanboys (yes, we know a few work in retail) and the right side of a SWOT chart.

First of all, a major problem is simply a security matter: Having a $700 piece of technology laying around your store with access to much of your business intelligence isn't a very safe system. After all, it's much easier to slip an iPad in your shirt than trying to, for example, fit a kiosk in your purse. Plus, as a hot consumer device (with waitlists to even get one), they're more likely to walk out the door than, say, an IBM 4690 would be.

But beyond the logistics of keeping track of loose iPads, the devices still have many problems that brings their usefulness in retail into question. A major barrier is Apple's app store, which doesn't allow third-party applications. Retailers could "jailbreak" the device (or some less criminally named process since it's now an "enterprise activity") to allow them to deploy in-house developed "apps," but this would likely void the warranty and render the device bricked with the slightest code errors.

There are also a slew of hardware problems that make the iPad hard to use.

• reports of WiFi connectivity issues
• no multitasking, which means 100% application integration on the back end 
• no camera, which means it can't be used to scan barcodes (unless you want to buy an external camera or barcode scanner, which pretty much defeats the purpose of such a sleek and sexy device). This is a huge disadvantage for the iPad, since many customers will be walking into stores with barcode-scanning abilities in their own pockets via smartphone.

Similarly, the iPad very publicly and explicitly does not support Flash. Many retailers such as Nike, Converse, Arctic Cat, and IKEA use Flash elements on their websites, which would make accessing those sites impossible via the iPad. The iPad also doesn't support GPS, and with geolocation becoming a hot new thing in retail, not having GPS ability will greatly impair the iPad's retail impact. For example, it makes it much harder for the sales associate to help a customer find a nearby location where they can find the item they're looking for if the store they're currently in doesn't have it in stock.

Another problem with the iPad is that you need adaptors like CRAZY to hook anything up to the tablet. You even need an adaptor for a USB plug! This would make it very inconvenient to attach the iPad to any of your in-store devices. One last problem is simply a matter of typing ability: The touch-screen keyboard makes it rather inconvenient to type with one hand while holding the iPad with your other hand, which would be the typical position sales associates would be in when using the tablet to help customers.

With all these downfalls, it seems unlikely that the iPad will catch on as a major tool for retailers to employ. Like so many "next great things" at the consumer level, the enterprise implications are just a little too challenging to make adoption easy.

However, this isn't to suggest that tablets aren't useful in retail; in fact, their potential is enormous. Cisco's recently released Cius tablet is specifically aimed at businesses, and it explicitly fixes many of the aforementioned problems with the iPad: It is compatible with a company's current Cisco business applications, it has a camera and can be integrated with existing Cisco telephone and conferencing products, it offers both USB and bluetooth connectivity, and it even will support 4G. Plus, to Steve Job's chagrin, it runs on the Android platform which offers far greater adaptability and configuration options.

It remains to be seen who what tablet maker will come out on top in the retail space, but with Cisco specifically targeting businesses rather than consumers, the battle has already begun.

Comments

[bob]

I'd say the iPad for retail environments is a total no-go. For all of the reasons you mention, plus the (likely) dozen or more you trimmed from your final edited piece.

I'd add, that anyone who would be a candidate to engage with the iPad at Retail-level probably has their own smart phone and reaching them via QR, RFID or just plain keyword/shortcode combinations can work equally well - PLUS, you get to leave in their pocket. You've connected with someone's most personal electronic device (displayed in public).

The iPad is grossly overrated as anything more than a luxury good. It can't fulfill so many basic functions, never mind cool ones, it's hardly worth considering for the long term. We know that Linux and Android Tablets, even Win7, are coming down the pike that will fill up the marketplace - and, provide some interesting in-store opportunities. Apple will forever be 4-6% of the computer market (which is what the iPad is, it's NOT a phone).

[Jason Goldberg]

There are workarounds for "some" of the practical problems you documented. For example, if you visit an Apple store you'll find a series of apps installed on the demo iPads that are not the versions available on the AppStore. Using an Apple server it is possible to push local apps to the device.

Never the less, the iPad like many consumer devices is not "Retail Ready" and trying to deploy it broadly as a retail tool would not likely go well.

On the other hand, as you pointed out in your original piece, wireless tablets (that are Retail Ready) could have some very interesting applications for sales associates. The iPad is a great platform to prototype those types of experience as a proof of concept.

I've had the same conversation with venues that want to "loan" iPads to customers or shoppers during events, people that want to use them as digital signage, etc...

It turns out that many people don't have great imaginations. So demonstrating a slate based solution using an iPad opens all sorts of doors that didn't get opened by a written a proposal, but when it comes time to deploy, choose something more suited to the task/environment. Frankly mainly of the firms announcing commercial applications for the iPad (digital signage apps, etc...) are really just using the iPad hype for a quick PR hit.

Jason aka Retailgeek
http://retailgeek.com

[Chi Park]

What an incredibly slanted article, geared toward selling the Cisco hardware. Here is my 2 cents (and no, I am not a fanboy as I hate MAC's but love other Apple products).

"reports of WiFi connectivity issues"
Where. Tell me. Would love to hear about this - as it doesn't exist.

"no multitasking, which means 100% application integration on the back end."
New OS update takes care of that. PS: Guess what? Every enterprise app that you need deployed for your retail environment will require POS/Backend integration. This isn't limited to the iPad.

"no camera, which means it can't be used to scan barcodes (unless you want to buy an external camera or barcode scanner, which pretty much defeats the purpose of such a sleek and sexy device)"
I've been in the traditional barcode/symbol business for nearly 7 years. Camera barcode scanning sucks and always will suck. I've seen AWESOME mobile devices equipped with camera scanning, and it sucks. Sorry to be blunt, but any retailer looking to invest in this weak scanning technology is just not there yet....and PS: Moto/symbol sells an awesome handheld mini-scanner key dongle sized unit that works incredibly well via wedge or api integration with the iPad via bluetooth.

"This is a huge disadvantage for the iPad, since many customers will be walking into stores with barcode-scanning abilities in their own pockets via smartphone."
It's called a bluetooth camera. Many are out there. Besides, how else is Apple going to make the money to produce an iPad 2, complete with camera for all the nay-sayers? ;)

"We know that Linux and Android Tablets, even Win7, are coming down the pike that will fill up the marketplace - and, provide some interesting in-store opportunities."

This is the one that makes me LOL the most. Winmobile is dying...it's like the arcades - circa 1993. They are dissapearing at an alarming rate, and MS knows it.

Linux/Android - awesome technology and will always be. I have a second phone running the latest Google OS and I love it. AS A PERSONAL DEVICE. Never would I recommend Android in-store. Open, unstable OS VS the "we own the stack" model of Apple????? You got to be kidding me.

[Greet Verellen]

Your post on ipad retail is great. Thanks for describing all the loopholes of ipad. This article is worthy and knowledgeable post.