Wednesday, March 3, 2010

Wither iPad: WiFi or 3G?

In a recent ZDNet article, author Rachel King reported an AT/T CEO's analysis suggesting that most persons would be buying WiFi iPads rather than the 3G version. I agree with the AT/T analysis but I think Rachel's meta-analysis is a bit off.

The AT&T analysis is dead-on. But I think Rachel
missed the point a little bit when she said, "If
you’re already plunking down $500 or $600 on a gadget,
the last thing you want to add is another monthly

The issue is not about buying a $15 a month
subscription to support a $500 commodity! That's the
way our lives work: We buy power subscription and
cable subscription to support a flat-panel tv
purchase. We buy skating club membership to support
the purchase of expensive skates. We purchase 3G
wireless access to support iphone purchase. iPhone
actually costs about $600 as well (if not for the
contract that underwrites the difference).

I believe the AT/T analysis is saying: iPad buyers
would mostly already be iPhone users who already have
existing 3G plans with their carriers. They won't want
to buy yet another 3G plan for data on another device.

What we should all be promoting now is for tethering
support b/w the iPhone and the iPad so people could
actually use the data plans they already have on both
co-complimentary devices.

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