The iPad

Effect

Resolve Market Research

™ Please note that all data are based on a nationally representative sample. © 2010 Resolve MR. All rights reserved | CONTACT: 323-871-4404.

Key Findings

• iPad users interact with their iPad most from home—in particular the couch (68%) and the bed (40%).

• The fun/toy perception affected the iPad in divergent ways:

– 55% saw it as an expensive toy

– Of those who owned/intended to own the iPad: 56% wanted to use it for “entertainment”

– Of those who didn’t want the iPad: 54% said they didn’t see the need

• The iPad will have an effect on e-Reader sales but not music player sales: 71% of owners/intenders want to read books on it compared to a little above one-third who want to listen to music or podcasts.

• Portable Gaming Devices are at a cross-roads:

– Currently, 28% of people want to use their iPad for playing games

– In addition, 60% think PGDs are best for playing games

– However, the top 2 devices people will not buy after purchasing an iPad is an e-Reader (49%) and a Portable Gaming Device( 38%)

• The iPad has the potential to be a strong gateway product to AT&T.

– For 37% of iPad intenders, this will be their first Apple product

– Of iPad intenders, 44% currently subscribe with Verizon

Methodology

The study was conducted by Resolve Market Research. The study was executed via an online survey from June 5th 2010 to June 10th 2010 among a US nationally representative sample of N=406 mobile/portable technology owners and intenders. Figures for gender, age and devices were weighted to their proportion in the US population using an omnibus sample of N=1000.

The study compared technology owners and intenders across four sub groups: The iPad group (n=205) those who own or intend to own an iPad.

The portable gaming device group (n=194) those who own or intend to own any of the following devices: PSP (2000, 3000, GO) or Nintendo DS

(DS Lite, DSi, DSi xl), the smartphone group (n=325) those who own or intend to own any of the following: iPhone (any model), BlackBerry (any model), Droid Smartphone (any model), or “Any other smartphone”, and the e-Reader group (n=137) those who own or intend to own any of the following: Kindle, Nook, or Sony E-reader.

The margin of error for the full sample is +/- 4%, higher for subgroups.

The Digital Playground:

iPad is simply seen as cool and impressive gadget.

Top Interest Drivers:

Entertainment

56%

Cool Factor:

42%

Convenience

40%

Top iPad Association:

55% of owners/intenders see the iPad as a very expensive toy

QO1A : Please identify the top three reasons for why you wanted or would like this device - iPad

QA2 : Which of the following statements do you agree with regarding the iPad?

Location, Location, Location:

Apple's "casual and comfortable" usage advertising seems to be hitting consumers right on target.

On the

Couch

68%

QU1B : Where in the home do you primarily use your iPad?

In the Bed

40%

On the

Porch/Deck

31%

The Digital Playground:

The influence of the toy perception.

Top consumer iPad

Perceptions

It is a very expensive toy: 55%

Top Reasons for

Intending the iPad

Entertainment: 56%

Top Reasons for

Rejecting the iPad

I don’t see the need for it:

54%

It is a technological breakthrough: 33%

Cool Factor: 42% It’s too expensive: 46%

It is a useful tool for productivity: 28%

Convenience: 40% Subscription fee for 3G: 17%

It will replace the need for netbooks: 25%

Brand: 28%

QA2 : Which of the following statements do you agree with regarding the iPad?

QO1A : Please identify the top three reasons for why you wanted or would like this device.

QO3 : You did not select an iPad as a device you own or intend to own. Why do you not want an iPad?

I have another device that covers the same functionality:

16%

Preferred iPad Functionality Prior to Purchase:

Everything but playing games & music.

80%

71%

70%

66%

63% 62% 62%

60%

59%

56% 55%

50%

40%

30%

20%

10%

0%

53%

39%

35%

28%

QU31 : On which device would you prefer to perform each of the following functions?

The iPad Effect On Other Devices:

Which of the following devices do you think is the most enjoyable for playing games?

Which of the following devices would you not buy after owning an iPad?

Portable Gaming Device

60%

E-Reader

Portable Gaming Device

Netbook/Laptop iPad

23%

MP3 Player

Gaming Console

29%

38%

32%

49%

27%

Smartphone

8%

MID

Smartphone

24%

22%

QG2A : Which of the following devices do you think is the most enjoyable for playing games? Rank 1

QA3A : Which of the following devices would you not buy after owning an iPad?

0% 10% 20% 30% 40% 50% 60%

The iPad is the Next Gateway Device:

It has the potential to have the same halo effect of the iPod.

Over one-third of consumers planning to purchase an iPad state that this will be their first Apple product.

Previously or Currently Owned Apple products:

iPod:

49% iPhone:

24%

QU6 : Which of the following products have you owned or currently own?

MacBook:

16%

37%

Carrier Migration:

The iPad has the potential to lead Verizon customers toward AT&T.

Mobile Phone Market Share

iPad Intenders

15%

8%

14%

44%

19%

Verizon AT&T T-Mobile Sprint Other

QD5 : With which cell phone carrier do subscribe?