The Apple iPad And Why I’m Glad I Purchased The 3G Model
Bingo, that’s me. Having five family phones on Verizon, I just never could justify the cost and hassle of all that it would take to get an iPhone. Along comes the iPad. I pre-ordered my 3G iPad and had it the first day it was available and I have no idea how I got along without it. Not having a smartphone, I use 3G all the time on the iPad. I have it with me everywhere - it’s my connection to the world wherever I go. I’ve found I’ve been able to use it a lot for work. It’s a huge advantage to get a question from a client when I’m not in the office and pull up pertinent files in Dropbox and take care of business. I use it for taking notes in meetings, sketching design ideas, marking up CAD files, as well as all the more common activities. Also, I’m usually able to expense my $15 data charge, so the whole idea of 3G is a no-brainer for me.
The extra $130 was a pittance due to the fact that I used the proceeds from selling 4 AAPL shares out of a lot that I bought in 1999 for $16.05/share. I got the top-o-the-line iPad for about $60. Well, sorta, I guess. :D
I remember your questions on the suitability of the iPhone in your circumstances when it debuted in 2007.
As your testimonial indicates, there’s a big market for the Apple iPad among working professionals who can make excellent use of the screen real estate.
It’s funny you mention Dropbox. Early this morning I loaded files at home into my Dropbox folder to open on my iPad when I teach a class tonight.
There is a large addressable market of people who have passed on the iPhone or other smartphones because of the recurring monthly costs but will find the Apple iPad absolutely irresistible and make use of the 3G capabilities.
Here’s a thought:
What about the Apple iPad with 3G as a budget alternative to a smartphone? Not everyone is interested in a smartphone with recurring monthly data charges.
There are millions of potential iPad customers interested first or primarily in an iPad as an electronic book reader. They may or may not have a smartphone and for only $15 per month they can have 3G service as an option.
This allows a person to continue using a much less expensive voice handset without recurring monthly data fees and the ability to use the 3G capabilities of the Apple iPad when needed or desired.
That is exactly what my secretary just did this weekend. She and her husband bought a 3G iPad. They have no cell phones and don’t really want any. They also have no functioning computer at home (she used one of our office Macs to set up the iPad.) What they wanted and got was: 1. an emergency no-contract cell phone for him to have at work 2. an easy way to get on the internet 3. a portable internet and phone connection when they travel. They may decide to add wi-fi at home (for $10/mo) to their VZ FIOS cable package, or maybe just persuade a friendly neighbor to let them use his wifi network.
Another excellent testimonial of an addressable market that many don’t consider. Obviously there’s overlap in market penetration for the iPhone and iPad, but the iPad also meets the needs of those who can’t justify the comparatively highly monthly cost of data services on their cell phone.
I’ve been working hard on my FQ4 estimates and took a much needed break late tonight to post about the benefits of the Apple iPad with 3G.
Snippet: When I purchased the Apple iPad in July I was aware I’d be spending, accessories included, more than what most people would invest in a netbook or notebook PC. After almost three months of very active use, I’ve come to the conclusion the Apple iPad isn’t a replacement for a netbook or notebook PC. Rather, it’s a device that transcends the PC paradigm completely.
If one is contemplating the purchase of an Apple iPad and choosing between models, the dollars invested in a 3G model are dollars well spent.
After looking at some amazing numbers for the quarter, I chose to take a break and write about the device that has made those numbers possible.
I’m bringing the original topic post back for the convenience of readers.