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JooJoo Tablet Faces Uphill Battle Against iPad

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http://www.wired.com/gadgetlab/2010/02/joojoo-versus-ipad/
JooJoo Tablet Faces Uphill Battle Against iPad

  • <LI class=entryAuthor>By Priya Ganapati <LI class=entryDate>February 8, 2010 | <LI class=entryTime>6:09 pm | <LI class=entryCategories>Categories: Media Players

When Apple’s iPad tablet debuts next month on retail shelves, it could sound the death knell for JooJoo, a tablet from an unknown Singapore-based startup that was once the talk of gadget blogs.
The $500 JooJoo is on target to ship at the end of February, a full month before Apple’s scheduled release date of the first iPads. But despite Fusion Garage’s optimism, many industry watchers are skeptical if customers will actually bite.
“Pre-orders have exceeded our expectations,” says Chandra Rathakrishnan, CEO of Fusion Garage. “We think the market is big enough for both Apple and us.”
JooJoo started its life as CrunchPad, an ambitious project dreamed up by Web 2.0 chronicler Michael Arrington. About a year and a half ago, Arrington posted a note about creating a $200 Linux-based tablet on his TechCrunch blog. Eventually, he partnered with Singapore-based company Fusion Garage to launch the product.
But a fallout between the two led to a lawsuit and Fusion Garage renamed the CrunchPad to JooJoo. In December, Fusion Garage showed pre-production models of the device. But weeks later, Apple joined the party with the introduction of the iPad, priced from $500 to $830 depending on storage and availability of 3G access.
Apple’s iPad could push JooJoo into obscurity, says Michael Gartenberg, vice president of consulting firm Interpret.
“The JooJoo is about as long a shot as you can get in this type of business, particularly with Apple sucking the oxygen out of the room in that space,” says Gartenberg. “Few consumers are going to say I want a JooJoo over an Apple iPad.”
JooJoo’s hardware design, though, is straight out of Apple’s playbook. Weighing 2.4 pounds, the device has an easy-to-use 12.1-inch capacitive touchscreen display. It has one USB port and a standard headphone and microphone jack. (For more details, see “Hands-On With the JooJoo.”)
JooJoo runs a custom operating system built by Fusion Garage and boots in just under nine seconds directly to a homepage screen. The device comes with Wi-Fi access but no 3G connectivity — though Rathakrishnan says the company may offer 3G in later models.
But slick hardware alone may not be enough to get a product like JooJoo noticed.
“This is an execution play from a company with no track record of execution,” says Gartenberg. “The question is, can they run a sustainable company that can deliver enough products?”
Rathakrishnan says his company is on track so far with its plans.
The JooJoo will be manufactured by a Malaysian company called CSL. CSL will pay for all the manufacturing costs in exchange for “very low single digit” percentage of the device sales. “This is lower than the fees charged in typical distribution deals,” says Rathakrishnan.
Even if Fusion Garage can churn out JooJoo products, going up against Apple’s marketing machine won’t be easy.
Rathakrishnan says the iPad launch didn’t catch his company by surprise. “We knew it was coming for a long time,” he says. “Apple went on and announced a device for the category we created in December.” He’s also counting on the JooJoo’s larger screen, the support for Flash technology and customers outside the United States to drive sales of the device.
“I love Apple and the brand, but it is a bit overblown,” says Rathakrishnan. “Despite the launch of the iPhone, Nokia remains the market leader, especially in Asia.”
Ultimately, it may come down to the perception of utility that the two devices — JooJoo and iPad — offer, says Gartenberg. Without the iPad’s photo app, e-book reader, video viewer, e-mail client, productivity apps and App Store, JooJoo could be a one-trick pony, ideal for web surfing but little else.
“You can’t discount the fact that Apple will have hundreds of developers creating native apps for the iPad, something that JooJoo will find difficult to do,” says Gartenberg.
Photo of JooJoo tablet: Jim Merithew/Wired.com
 
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