What the iPad could mean for LBS

UK: Initial reactions to the iPad have been largely negative, with many struggling to identify a comparable product category and addressable market. However, the newly released and massively anticipated device brings with it a lot of potential for the LBS market.

IMS Research believes that Apple is bringing together a number of elements that may create new opportunities for location services and related revenues, should this new device segment succeed. Tom Arran, a Research Analyst at IMS Research, was on hand to discuss the device and the impact it may have with the entire location market. Arran stated, "Much like previous incarnations, Apple is expected to increase the size of the mobile OS X installed base by removing key technological barriers and creating a user friendly ecosystem."

The iPad offers a large portable screen that is easy to use and supports over 10hrs of battery life. The established iTunes payment model creates an often familiar (125 million credit card iTunes customers) and easy format for payment for a variety of services including applications and music. This helps to create a large overall addressable market across Apple devices, while also enabling some new features and services, specifically for the iPad.

From an LBS point of view, the top tier iPad contains a compass, accelerometer, aGPS and cellular connectivity, using the same underlying software as existing iPod Touch and iPhones, enabling and encouraging location application developers to address this large overall market with new services.

To give an example, although the iPad does not have a camera to support “classic” augmented reality, we may see photorealistic location applications that make use of the compass and accelerometer to layer information onto maps or 3-D images. Following the acquisition of placemate, it would seem that Apple has plans of its own in the area of mapping and content layering.

The lower tier iPad illustrates that GPS isn’t a fundamental part of the device offering. However, this was partly anticipated and does not affect forecasts from IMS Research’s recent report, “GPS in Mobile Computing”. As expected, Apple has chosen to include Skyhook Wireless’ WLAN location technology as standard, indicating it still values the proposition of location on mobile computers.

One of the largest gripes of the iPad announcement – the lack of Adobe Flash - may actually benefit the market for web based location. The forced movement towards HTML5 could bring some fantastic developments for location based websites. This addition will also allow for localised search, a new form of SEO, which opens the door for pedestrian location and advertising.

The recent acquisition of Quattro Wireless demonstrates Apple’s intentions in the advertisement space. Quattro Wireless was already active in mobile location advertisement before the buy-out so Apple may be considering this as another potential revenue stream.

Arran went on to say: "It is still too early to measure the true impact of Apple’s latest device launch. However, Apple’s common, location-enabled, mobile platform, supporting a large installed base of paying users, creates the perfect opportunity for location based services and advertising to grow."