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UBS: Half of new iPads sold will tap into 4G

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UBS believes the new iPad will be the catalyst that drives consumers to connect their tablets to mobile broadband networks. In a new report, UBS predicted there would be a near 50/50 split between Wi-Fi only and 4G iPads sold, driven in particular by strong demand for superfast LTE connectivity in the U.S.

“With an HD screen, faster processor and higher-resolution camera, we believe this device will drive demand for faster connectivity,” UBS senior analyst John Hodulik said in research note. And given Verizon’s(s vz)(s vod) superior LTE coverage, Hodulik said, Big Red definitely has an edge over AT&T(s t) when it comes to selling the iPad.

UBS said that previous generations of iPad split 60/40 between Wi-Fi only and 3G models (numbers supported by other studies), but whether those 3G iPad owners actually connected their tablets to EV-DO of HSPA networks is a different question altogether. Wireless industry analyst Chetan Sharma found that only 1 out of every 10 tablet sold connects to a wide-area wireless network. Considering the iPad is the best selling tablet by a long shot, Sharma and UBSs’ numbers don’t quite gel – unless a lot of people are buying top-of-the-line iPads and simply not signing up for mobile service.

11 Responses to “UBS: Half of new iPads sold will tap into 4G”

  1. Phil Jones

    if I’m not wrong, your link behind “(numbers supported by other studies)” (about the 60/40 between Wi-Fi only and 3G models) doesn’t support at all that split!

    • Kevin Fitchard

      Hi Phil,

      It’s a study of Western Europe, but it concluded that 1/3 of iPad sales were the 64 GB 3G iPad 2. 33% isn’t 40%, but there are other 3G iPads besides the 64 GB version

      • Phil Jones

        well yes there are not % in that study, that’s probably one of the problems which makes its non relevance here? But it’s not even 33% vs 40%: If I get it correctly, UBS said that they were 60% of iPad were Wi-Fi only before. The study from V3 says that the highest iPad model sale is a 3G one!

        Anyway, it’s just a detail. I agree with your article.

  2. Manish Bansal

    I got a 3G iPad 2 because I wanted the GPS functionality and it was only available in the 3G version. I have never used the 3G connectivity and never will in the near future.

  3. Lindsworth Horatio Deer

    That means more Apple iPads on contract plans. American more comfortable with the idea of the Apple iPad as a serious gadget and thus are now wiling to commit to get the blazing fast speeds of LTE. After all, if a 2 year contract gets you connected anywhere, why not go the full hog instead of just Wi-Fi. LTE, Retina display and Quad-Core are what everybody was dreaming of…..and Apple iPad 3 Delivered

  4. Chetan’s tablet sales number points to 25 million units sold in Q3 in US. This is at odds with Apple’s global iPad sales for the same quarter at 11.12 Million units.. Other tablets including webOS could not have filled the rest. All studies i have seen point to a 60/40 or 50/50 split.

  5. Matt Eagar

    I don’t think so. People who want mobile connectivity didn’t hesitate to buy in when only 3G was available (why would they?). Others who don’t need it are not going to pay extra just because it’s faster.

    Beyond that, my gen1 iPad had 3G, but this time around I saved the $130 and bought the WiFi model because my phone now allows tethering and I don’t want to spend for two mobile data plans.