Over 60% of Apple's first-wave iPad 2 production to be 3G models
The majority of Apple's second-generation iPad models now being built will include either GSM/UMTS or CDMA 3G support, according to checks of overseas manufacturers, suggesting the company plans on forging stronger relationships with wireless carriers alongside the device's introduction.
After briefing AppleInsider exclusively last month on the components expected to find their way into the new iPads, analyst Ming-Chi Kuo of Concord Securities has provide additional details on the five million unit supply Apple is reportedly amassing prior to its launch in the coming months.
As previously reported, Apple is expected to offer its second-gen iPad in three versions: a WiFi only model, a GSM/UMTS version for AT&T and most other carriers globally, and a CDMA/EVDO model for Verizon (and possibly other CDMA carriers in the future). The naming convention for these three models is said to be K93, K94 and K95, respectively. For comparison, the Verizon iPhone 4 shipping this month is codenamed N92.
In speaking to AppleInsider, Kuo said his checks in the Far East indicate production figures of 38 percent for the K93 WiFi model, 46 percent of the K46 3G model, and 16 percent for the Verizon-compatible K95 CDMA version. This indicates that Apple apparently expects most iPad 2 users will opt for 3G models, even on Verizon where new iPhone buyers have the option to pay $20 for hotspot service through their new smartphone.
Verizon's existing iPad data plans offer 1GB for $20 per month and $20/GB after that, or $35 for 3GB, $50 for 5GB and $80 for 10GB, each with $10/GB overage charges. The $20 tethering plan via iPhone 4 provides 2GB, a considerably better deal.
While Apple has never provided much color on its sales mix of WiFi versus 3G iPad models, it did as recently as last month say that the average selling price (ASP) of all iPads it shipped during the fourth calendar quarter of 2010 came out to roughly $600. With the cheapest 3G iPad retailing for $629, Apple would presumably have had to see the mix weighted heavily towards the the 16GB $499 WiFi model and 16GB $629 3G model for sales of 3G models to outweigh WiFi ones given that ASP.
Still, this isn't the first time that sources close to Apple's manufacturing partners have indicated that sales of 3G iPads are now outpacing WiFi models. The widely cited Taiwanese DigiTimes recently reported that 60 to 65% of all iPads Apple was shipping around the December timeframe were 3G models.
The publication went on to similarly predict that consumers were beginning to prefer models that are able to remain connected to the Internet at all times, adding that Apple was "aiming to work even more closely with telecom carriers by offering more wireless solutions for iPad 2 to satisfy market demand."
That same report estimated that Apple would ship 40 million second-generation iPad units in 2011, representing between 65% and 75% of the global tablet PC market.
After briefing AppleInsider exclusively last month on the components expected to find their way into the new iPads, analyst Ming-Chi Kuo of Concord Securities has provide additional details on the five million unit supply Apple is reportedly amassing prior to its launch in the coming months.
As previously reported, Apple is expected to offer its second-gen iPad in three versions: a WiFi only model, a GSM/UMTS version for AT&T and most other carriers globally, and a CDMA/EVDO model for Verizon (and possibly other CDMA carriers in the future). The naming convention for these three models is said to be K93, K94 and K95, respectively. For comparison, the Verizon iPhone 4 shipping this month is codenamed N92.
In speaking to AppleInsider, Kuo said his checks in the Far East indicate production figures of 38 percent for the K93 WiFi model, 46 percent of the K46 3G model, and 16 percent for the Verizon-compatible K95 CDMA version. This indicates that Apple apparently expects most iPad 2 users will opt for 3G models, even on Verizon where new iPhone buyers have the option to pay $20 for hotspot service through their new smartphone.
Verizon's existing iPad data plans offer 1GB for $20 per month and $20/GB after that, or $35 for 3GB, $50 for 5GB and $80 for 10GB, each with $10/GB overage charges. The $20 tethering plan via iPhone 4 provides 2GB, a considerably better deal.
While Apple has never provided much color on its sales mix of WiFi versus 3G iPad models, it did as recently as last month say that the average selling price (ASP) of all iPads it shipped during the fourth calendar quarter of 2010 came out to roughly $600. With the cheapest 3G iPad retailing for $629, Apple would presumably have had to see the mix weighted heavily towards the the 16GB $499 WiFi model and 16GB $629 3G model for sales of 3G models to outweigh WiFi ones given that ASP.
Still, this isn't the first time that sources close to Apple's manufacturing partners have indicated that sales of 3G iPads are now outpacing WiFi models. The widely cited Taiwanese DigiTimes recently reported that 60 to 65% of all iPads Apple was shipping around the December timeframe were 3G models.
The publication went on to similarly predict that consumers were beginning to prefer models that are able to remain connected to the Internet at all times, adding that Apple was "aiming to work even more closely with telecom carriers by offering more wireless solutions for iPad 2 to satisfy market demand."
That same report estimated that Apple would ship 40 million second-generation iPad units in 2011, representing between 65% and 75% of the global tablet PC market.
Comments
Please announce this February 14th so that I may budget my income tax refund accordingly.
I hope they don't also screw over Canada (again!) this time by making us wait three extra months also.
Right now I'm leaning toward staying with a wifi only iPad 2. Especially if AT&T allows the hotspot feature.
If I do get a 3G iPad 2 it will be for the GPS chip (along with the added benefit of 3G possibilities.)
Here's hoping the wifi version gets GPS.
Right now I'm leaning toward staying with a wifi only iPad 2. Especially if AT&T allows the hotspot feature.
If I do get a 3G iPad 2 it will be for the GPS chip (along with the added benefit of 3G possibilities.)
Same here - jailbroken iPhone 4 allows me to tether all I want when I happen to be out of range of a wifi network
I hope they don't also screw over Canada (again!) this time by making us wait three extra months also.
I think it was a legitimate underestimation last year, which shouldn't be (as big?) a problem this year.
Here's hoping
As to the Ipad2's launch that could come at any time, I'm even thinking this month. They will not have enough models available to meet demand no matter what they do, if half the rumors are correct. If they are all correct they will never meet demand.
Here's hoping the wifi version gets GPS.... If I do get a 3G iPad 2 it will be for the GPS chip.
I think you've nailed it on the head here... Likely, Apple is selling more 3G models than WiFi, since the majority of people looking for this kind of a device want an 'all-in-one' solution. The 3G model, with it's built-in aGPS and the possibility of using cellular data without a contract, offers just that.
PS. Just a little thing...I didn't like the black plastic piece on the back of the 3G models. We'll see what the iPad 2 looks like though.
I think you've nailed it on the head here... Likely, Apple is selling more 3G models than WiFi, since the majority of people looking for this kind of a device want an 'all-in-one' solution. The 3G model, with it's built-in aGPS and the possibility of using cellular data without a contract, offers just that.
I have the 3G model, however I have only used the cellular feature a couple times when I first got it. Now I almost always have wifi available, yet my contract keeps renewing automatically. I could stop it obviously but, if I need it, I have to go through the hassle of setting it up again. AT&T is definitely getting the better part of this deal, with me anyway.
In the end though I will have to see iPad 2 and the new rates for WiFi tethering from AT&T to make a decision. There is some advantage to having just one account for 3G access, but corresponding negative also.
As to the Ipad2's launch that could come at any time, I'm even thinking this month. They will not have enough models available to meet demand no matter what they do, if half the rumors are correct. If they are all correct they will never meet demand.
Good points... But I think they will meet demand eventually. It may take awhile though.
Even though China is now the second largest economy and has been growing at ~10% a year on average for the last 30 years or so, half their population still lives in poverty. They are still building at a rate that equates to a city the size of San Francisco "every day!"
While we're all "selling insurance" to each other here in the US...they will be all assembling iPad 2's, high speed trains, stealth fighters, an aircraft carrier or two and the fastest super computer in the world!
Best
But that makes me wonder: WiFi is so ubiquitous these days, do they really think that there will be that much demand for the 3G iPad? Or am I missing something here?
Verizon's existing iPad data plans offer 1GB for $20 per month and $20/GB after that, or $35 for 3GB, $50 for 5GB and $80 for 10GB, each with $10/GB overage charges. The $20 tethering plan via iPhone 4 provides 2GB, a considerably better deal.
Ridiculously, unnecessarily complicated set of options.
How odd. The iPhone gets Personal Hotspot tethering, and at the same time more iPads with 3G are being produced. What gives?
The 3G models are still useful for people who do not have a phone capable of tethering. There are a lot of people like that.
I know you guys have to pay the rent but taking ads from Motorola to spout their anti Apple drivel is a bit much.
Be happy. Whatever Motorola paid for the ads on AI is probably almost a complete waste of their money.
I was planning on getting a wifi only iPad2. I thought if I were out of wifi range...I can always use my iPhone 4. It just rubs me the wrong way to give ATT another $15-$30/month...(even though there is no contract.)
PS. Just a little thing...I didn't like the black plastic piece on the back of the 3G models. We'll see what the iPad 2 looks like though.
I'm going to get the 3G model to replace my wifi model. My thought is that since it's purely month to month, why not? Plus on resale, the value of the 3G pretty much conveys with little depreciation.