My bud Tony and I love discussing the tech industry, trends, and the like. We’ve been pondering the possibilities of this device for a year or so now when the rumor mill started getting more specific about its theoretical size. Now that we’ve actually seen the device I’m not sure where I stand.

As a consumer device, I think I see where Apple is trying to position iPad in the market. With the emphasis on core consumer apps (photos, videos, email, calendar and address book) I could almost see them selling this as a ‘non-computer’. This is a device you buy for your computer-ignorant mom so she can organize and enjoy all those pictures she made you scan during your third semester of college when all you wanted to do was get a decent night’s sleep and not feel the entire planet’s weight on your shoulders.

Come to think of it, I don’t think anyone used the term ‘computer’ during the whole presentation. And that’s sort of the point, for a lot of people the term computer has a certain stigma as something that is difficult to understand and use. I’m obviously referring to people over a certain age here that never bothered to use computers and are helplessly lost these days.

While I don’t think that’s its sole demographic, I can certainly see this device being sold like a microwave. A microwave performs a utilitarian function and (in theory) is easy for anyone to operate. The iPad provides a ‘computer-less’ way for people to email, web surf, and so on. I see the appeal this could have among those who are intimidated by traditional computers and Apple’s reputation as a manufacturer of products that are easy to use will certainly help them make inroads to that market.

Ebooks as an iTunes-like business definitely has possibilities. Amazon has proven the viability of the Ebook market; has certainly seen success with the Kindle; and the iPad is certainly better-featured. We could be looking at a situation similar to the launch of the first iPod where the integration of the iTunes store and the player device allowed Apple to take an emerging market and literally own it a few years later.

As for this being a viable platform for business apps, I have no idea. They showed off iWork being used. It seems simple enough, but I’d really have to have some hands-on time to draw any conclusions. I can’t imagine the on-screen keypad would allow you to type as fast as a physical keyboard. Of course they do have a dock with an integrated keyboard, so who knows.

For my part, I think Apple has a bit of a trojan horse with this device and that’s the higher eduction market. Apple laptops are the #1 brand of computer among college students accounting for a 39% share in 2008, with that number expected to have grown in 2009. There are many colleges that issue iPod touches or recommend iPhones because of the educational coursework apps that have emerged in the last couple years. Being able to combine that existing functionality with an Ebook reader which you can also load all your textbooks onto could prove a potent combination. If Apple makes an effort to get this device into the hands of students, they not only gain greater dominance in the higher-eduction market, but they seed an entire generation of young adults as Apple customers.

I think the $499 price tag for the entry model is good and certainly on par with higher end netbooks. I think the monthly fee for 3G access ($15 for 250MB $30 for unlimited) on the GSM models is a good deal. I like that there’s no contract and its just a flat fee. Not as appealing as the Kindle’s free wireless access but, again, it can do a lot more than the Kindle.

The only glaring omission? I can’t for the life of me figure out why there isn’t a front-facing camera so you could do video chat. Next year’s model I suppose.

So that’s it. I certainly see potential for the iPad but it remains to be seen if this device captures people’s attention in the way other Apple products have. I think Steve Jobs has proven time and again that he has amazing instincts for where markets are about to jump; whether its office productivity software in the 80’s, the integrated mp3 player/store, or the smarter smart phone. I’m curious to see if he’s right once again.

As an interesting side-note: the first thing I thought about upon seeing the iPad was the D5 conference where Steve Jobs and Bill Gates were interviewed together. Its very interesting that Gates evangelizes the tablet form factor, while Jobs stays silent (he’s later teased a bit about playing his cards so close to the vest). I can’t help but imagine that the iPad is already in advanced stages of development at this point (2007). It would be quite ironic if Jobs’ company comes to popularize and lead the market for a device Gates championed.

For those who are interested in seeing the keynote where they do some hands-on demos, you can stream the video here.