IMS Research analyst Tom Arran gave us some thoughts this week about the iPad and what it means for the location-based services market. “IMS Research believes that Apple is bringing together a number of elements that may create new opportunities for location services and related revenues, should this new device segment succeed”.

“From an LBS point of view, the top tier iPad contains a compass, accelerometer, aGPS and cellular connectivity, using the same underlying software as existing iPod Touch and iPhones, enabling and encouraging location application developers to address this large overall market with new services.”

However, Arran recognizes that location-based services are probably not a core experience of the device. “The lower tier iPad illustrates that GPS isn’t a fundamental part of the device offering”, he said. “However, this was partly anticipated and does not affect forecasts from IMS Research’s recent report, “GPS in Mobile Computing”. As expected, Apple has chosen to include Skyhook Wireless’ WLAN location technology as standard, indicating it still values the proposition of location on mobile computers.”

The volume of low end versus high end iPad sold could therefore have a strong impact on whether location-based services will succeed on this platform.

Web-based location?
According to Arran, “One of the largest gripes of the iPad announcement – the lack of Adobe Flash - may actually benefit the market for web-based location. The forced movement towards HTML5 could bring some fantastic developments for location based websites. This addition will also allow for localised search, a new form of SEO, which opens the door for pedestrian location and advertising. The recent acquisition of Quattro Wireless demonstrates Apple’s intentions in the advertisement space. Quattro Wireless was already active in mobile location advertisement before the buy-out so Apple may be considering this as another potential revenue stream.”

Arran went on to say, “It is still too early to measure the true impact of Apple’s latest device launch. However, Apple’s common, location-enabled, mobile platform, supporting a large installed base of paying users, creates the perfect opportunity for location based services and advertising to grow.”