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

MethodologyThe 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.

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?

Top Interest Drivers:

Top iPad Association:

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

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

The Digital Playground:

The influence of the toy perception.

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?

Top Reasons for Rejecting the iPad

Top Reasons for Intending the iPad

Top consumer iPad Perceptions

Reading a

Book

Reading a

New

spap

er Arti

cle

Watc

hing Video

s

Browsing t

he Inter

net

Creating D

ocumen

ts

Downloading/U

sing A

pps

Reading B

logs

Reading/S

ending E

-Mail

Lookin

g at P

hotos

Downloading/L

isten

ing to M

usic

Listen

ing to th

e Rad

io/Podca

st

Downloading/P

laying G

ames

0%

10%

20%

30%

40%

50%

60%

70%

80%71%

66% 63% 62% 62% 59% 56% 55% 53%

39%35%

28%

Preferred iPad Functionality Prior to Purchase: Everything but playing games & music.

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

Smartphone

MID

Gaming Console

MP3 Player

Netbook/Laptop

Portable Gaming Device

E-Reader

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

22%

24%

27%

29%

32%

38%

49%

The iPad Effect On Other Devices:

QG2A : Which of the following devices do you think is the most enjoyable for playing games? Rank 1QA3A : Which of the following devices would you not buy after owning an iPad?

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?

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

Previously or Currently Owned Apple products:

The iPad is the Next Gateway Device:It has the potential to have the same halo effect of the iPod.

QD5 : With which cell phone carrier do subscribe?

44%

19%

14%

8%15%

Mobile Phone Market Share iPad Intenders

Verizon AT&T T-Mobile Sprint Other

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