Despite lack of necessity, iPad still seen as fun and cool

By Quirk's Staff | July 1, 2010

Reading time: 2 minutes

Abstract

Nearly four months after its April 2010 launch, analysts are able to see the impact the iPad has made on the electronic portable device market - and from what other devices its drawing its buyers.

Industry/Market Focus:: Consumers | Electronics | Entertainment | Internet/Web | Retailing
Content Type: E-Newsletter Article

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Editor's note: This article appeared in the July 26, 2010, edition of Quirk's e-newsletter.

The launch of the iPad was met with seemingly equal parts enthusiasm and skepticism - it's trendy, but is it worth the high price tag? Nearly four months after its public release, analysts are beginning to see how the iPad will impact the portable electronic device market, consumer attitudes on tablets and brand engagement. A study from Resolve Market Research, Los Angeles, investigated the attitudes, usage patterns, brand affiliations and spending habits of technology device owners and "intenders," those intending to own devices by the end of 2010, in four categories: the iPad, smartphones, e-readers and portable gaming devices.

For those willing and able to splurge on a "very expensive toy," the iPad serves as a catch-all portable entertainment device that streamlines the functionality of gaming devices, laptops and e-readers - all while maintaining its cool factor. For others, the convenience and hipness of the iPad isn't enough to overlook the iPad's lack of necessity - nor to justify the cost.

The iPad is trending toward a major takeover given that users of e-readers and portable gaming devices intend to forgo buying those devices in the future and instead defer to the iPad for their e-reading and portable gaming needs. Sixty percent of iPad owners/intenders view portable gaming devices as most enjoyable for playing games, yet 38 percent say they will not buy new portable gaming devices after owning an iPad. Nearly 50 percent say they will not buy an e-reader after buying an iPad. However, iPad replacement of other devices (smartphones, gaming consoles and netbooks/laptops) will not take place at such a high rate.

The No. 1 reason to own an iPad? It's entertaining. The top reasons for wanting an iPad are entertainment (56 percent); cool factor (42 percent); convenience (40 percent); and Apple brand (28 percent).

Fifty-five percent call the device "a very expensive toy." They view it in terms of amusement as opposed to practicality. Because of the strong associations with entertainment and coolness, the top reasons for rejecting the iPad were related to its futility: unnecessary (54 percent); it's too expensive (46 percent); subscription fee required for 3G (17 percent); and duplicates functions of other owned devices (16 percent).

The iPad may also serve as a gateway device to AT&T's wireless business. Not only are a surprisingly large percentage of iPad intenders planning to buy their first Apple product but many of them are also currently subscribing to other carriers. Greater exposure to the iPhone OS might produce interest in their mobile or computer offerings. Thirty-seven percent of planned iPad purchasers will be first-time Apple customers; 44 percent of iPad intenders are Verizon customers; and 19 percent are with AT&T. Forty-one percent intend to purchase an Apple iPhone within the year.