Is Apple's 12-month Product Lifecycle Still Good for Business?

It's that time of year again. No, not when Valentine's Day chocolate is still on sale as Cadbury mini-eggs come back. Even though that is happening right now, too. I'm talking about the annual product lifecycle for Apple, namely the new iPhone and iPad 2.

Steve Jobs is a master of supply and demand - creating hysteria over new product launches for years. And making it last to some degree for a full 12 months. Even now, people can't wait to get their hands on an iPhone 4...even though it's old news as far as new products go.

This makes me wonder if Apple's strategy has worked too well. If they stick to their guns and launch iPhone 5 an their annual cycle, we should be seeing it soon. With this strategy, we should also be getting a real glimpse of iPad 2. In fact, there is a strong suspicion that Apple will unveil the iPad 2 tomorrow (March 2). But, as with iPhone 4, the original iPad is still flying off the shelves. With this in mind, my first question is 1) Are they not cutting into their own product market share by releasing a new product when demand is still high for the current version? 2) Does Apple need to continue to release new products on a 12-month cycle, or has their dominance with innovation given them enough breathing room to essentially dictate how and when new innovations should hit the market? As a consumer who is waiting for iPad 2, I hope not. But I guess that's the power of a company that's now worth $100 billion more than Microsoft.

Knowing that the traditional timeline for new Apple products is quickly approaching, the rumors surrounding those products have also ramped up. There is a growing list that you can read here. The ones that stick out to me are the much larger screen for the iPhone 5, including a slide-out keyboard, and a camera between 8 and 12 megapixels. The larger screen and better camera sound right in-line with Apple's innovation style - but the slide-out keyboard would be a big surprise to many users if it happened. I can only assume this feature would open up the market for business consumers - trying to steal that domain from RIM's Blackberry.

The other no -brainer for me is the back and front facing camera for the iPad 2. Apple's Facetime application has the potential to indirectly create customer loyalty that's as strong as RIM's Blackberry Messenger. I know that's one of the only reasons I am still on a Blackberry, and the same goes for most of my friends. The camera on the iPad 2 is also one of the driving reasons I do not currently have an iPad 1...I'm waiting to for this feature and application to change my life.

With Tablets starting to flood the market, this indeed looks like it will be the year of the Tablet. As a consumer, I look forward to watching the market evolve and unfold, and see who is leading the pack when December holiday shopping comes around. My money will be on the iPad...but maybe RIM's Playbook has a game plan up their sleeve. ~ p