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iPad 2's New Smart Cover Can't Protect ZAGG

For techies everywhere, yesterday's unveiling of Apple's (AAPL) iPad 2 was a thrilling event. The thinner body, the faster processors and the front-facing camera all wowed the crowd. However, the most disruptive feature to the iPad-accessory industry that has evolved during the past year may have been the Smart Cover -- a magnetically integrated protective cover that doubles as a stand. To see just how disruptive this new feature is, look no further than ZAGG (ZAGG).

ZAGG manufactures protective cases, skins and screen protectors -- like the invisibleSHIELD -- for iPads, iPhones and other portable electronic devices. Apparently, ZAGG investors had been anticipating a new wave of sales for the company's products once the iPad 2 hit store shelves. As soon as Steve Jobs announced that Apple had developed the Smart Cover, ZAGG's stock price dropped nearly 24%, from just above $9 to just above $7 per share.

Continue reading iPad 2's New Smart Cover Can't Protect ZAGG

Best Buy (BBY) has unique marketing opportunity with gadget protector

When Best Buy, Inc. (NYSE: BBY) decided to pick up the ZAGG (OTC: ZAGG) invisibleSHIELD product, gadget fans everywhere need to have cheered. After all, the ZAGG product, which I've used, is an invisible shield made of military-grade film that covers all exposed surfaces of thousands of portable electronics, saving them from harm, scratches and nicks. What's not to love? Instead of those bulky and hard to handle leather and rubber cases, just cover your beloved iPhone, BlackBerry or digital camera with some clear film and drop it all you want. Well, hopefully not.

Best Buy has a unique marketing opportunity here that it may not recognize yet. Portable electronics are where it is at. We all want to have our email, voice-mail, digital camera capability, text messaging and maybe even portable Internet access anywhere we go, at any time. This means portable gadgets. While most of them are designed to look and feel extremely nice, the rigors of abuse in the real world don't generally agree. That's where ZAGG's product comes in.

Best Buy needs to land a major web and possibly TV marketing campaign to show just how easily this product can protect their sensitive and loved personal portable electronics. Get customers into stores to buy or special order one and make sure they leave with a few peripheral purchases. Accessories generally don't get the general public excited, but this is one that should. Some retailer needs to take advantage of it.

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IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 11, 2012: 11:20 PM

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