iPad 2 and Zagg


There are companies that know how to take advantage of the success of other companies to introduce complementary products for a blockbuster product.

With the rise of touch screen technology and the popularity of Apple’s products, screen protection companies are set to benefit from consumers willing to spend a little extra money to protect their gadgets. One particular company is Zagg, and offers shields to protect and personalise the iPad, iPhone, Motorola and HTC mobiles. To be more precise, I can read the Zagg vision statement from its website:

Zagg is committed to offering innovative ways to improve the relationship between people and their beloved gadgets that they love and rely upon.

By reading until here, I can say this is a story with a happy ending. But what could happen if Apple launch a cover for its products, let’s say iPad?, as I wrote today in my previous post the new iPad 2 has a cover called Smart Cover to protect the screen and also works as a stand.

To visualise both products , I will add a nice picture taken with the new cover for the iPad 2 and the Zaggmate:

iPad Smart Cover vs. Zaggmate case with keyboard

What is the market saying? On March 2nd, Zagg shares plunged almost 24% on concerns that the company will lose its business. Some will think “the company’s shares could face some selling pressure going forward”.

Despite the concerns in the market of losing business to Apple, Zagg shares rebounded in today’s trading after the company’s spokesman Nathan Nelson said  “the new iPad 2 cover does not replace the need for scratch protection on the device, which is offered by invisible SHIELD, the company’s flagship product”.

Today 3rd of March, Zagg has announced a complete accessory line for the iPad 2 to be marketed later this month.

Some analysts were worried about Zagg performance, but I think the company has known how to take advantage of not only Apple products but different new technical gadgets and the necessity to protect them from scratches and nicks. I believe Zagg is the first mover in this segment of the market and by following another leaders in the market is complementing the value proposition, the result is a happy ending for the “end-user” who loves his beloved gadget.

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