With Select Apps, Ipad Is More Than a Pretty Face

Extract from "With Select Apps, iPad is More Than a Pretty Face", New York Times, April 2010

Travelers can download 1,000 Experiences from Lonely Planet ($10), a graphically rich look at a wide variety of trips. Lonely Planet cut the price for its app in half after a few days, which is a telling development. IPad developers started with prices that were often much higher than iPhone versions of the same software, based on logic that no one has yet unearthed. As competition builds in the App Store, that logic should fade quickly.

Additional Background facts to the case:

6 weeks after the launch of the iPad:

• 1 million iPads and 85 million iPhone devices had been sold in total.

• There were 196,000 iPhone applications and 5,700 native iPad applications

People can use iPhone applications on their iPads but the resolution is not as good as an iPad application.

Both iPhone and iPad applications are displayed in the application store in order of their popularity, so that the

most popular application is always the first one that any customer sees.

Specific Data for Case:

These data cover the first 6 weeks after the launch of the iPad, for an application that allows users to access information and reviews about restaurants in cities across the US on their iPad and iPhone.

| |iPad Price |iPad Downloads |iPhone Price |iPhone Downloads |

|Week 1 |9.99 |700 |0.99 |10,500 |

|Week 2 |9.99 |500 |1.99 |1500 |

|Week 3 |4.99 |1200 |1.99 |700 |...