Adobe Looking Suite at $35: New Photoshop Touch for Tablets and Creative Cloud
At the MAX 2011 conference, Adobe (NASDAQ:ADBE) announced six new tablet apps, including Photoshop Touch, a touch-optimized, tablet version of Photoshop, Adobe’s most popular image editing software. It also launched Creative Cloud, which allows Creative Suite users to share files and access them across devices using Adobe’s cloud storage, enabling social sharing and interaction among users. [1] It will launch these new apps on Apple‘s iOS and Google‘s Android tablet platforms.
Adobe is the dominant player in the image editing software market where it competes with Apple (NASDAQ:AAPL), Quark and Corel. It has offerings for all major platforms. Photoshop and Creative Software account for more than 50% of Adobe’s $35 Trefis price estimate, which is nearly 45% above the current market price.
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With Adobe Touch Apps, Adobe Takes to the Tablet
Adobe already offered Photoshop Express for iOS, but it lacked many features compared to the desktop version of Photoshop. With Photoshop Touch, Adobe plans to bridge that feature gap.
Besides Photoshop Touch, Adobe also announced 5 other new Touch Apps. [2]
- Adobe Collage – a tool to combine photos, drawings and text to create collages
- Adobe Debut – a presentation tool
- Adobe Ideas – a vector based drawing tool
- Adobe Kuler – a color theme generator tool
- Adobe Proto – a wireframe tool to create website prototypes
During Adobe’s Q4 earnings results, we stated that Adobe’s growth now depends on how it can take its leadership position in the computing market and successfully carry it onto the tablet market, where the action is going to be in a couple of years.
With these new tablet apps, we expect Adobe’s Creative software sales to pick up significantly in the coming years. Adobe will be pricing each app at $9.99, which is much lower compared to its desktop software suite, to boost sales in the growing tablet market.
The Creative Suite will merge seamlessly with the Creative Cloud enabling users to access their files on multiple devices effortlessly.
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