“AT&T, the No. 2 U.S. mobile service, is the only U.S. operator providing cellular connectivity for iPad, of which Apple said it sold 3.27 million units in the second quarter alone,” Reuters reports. “Pacific Crest analyst Steve Clement said this could indicate that many iPad purchasers aren’t bothering to connect the device to the Internet using the AT&T network.”
MacDailyNews Take: Either that, or AT&T’s failing to bill users, which would be a first.
Reuters reports, “‘Half a million at this point would seem low,’ Clement said… However, AT&T’s Stephenson was upbeat about his company’s wireless business and said he is expecting record sales of smartphones such as the iPhone 4 this quarter. ‘In the third quarter we’re on pace to set a record for integrated devices,’ Stephenson told the Goldman Sachs Communacopia XIX Conference on Tuesday.”
“Stephenson said AT&T is seeing improvements in its wired broadband business in the third quarter after a weak second quarter,” Reuters reports. “However, the executive said that high unemployment numbers are hurting its enterprise business and that this business would only improve if hiring improves.”
Full article here.
MacDailyNews Take: Devices like a Verizon MiFi mobile hotspot, for example, can explain why AT&T’s iPads numbers seem low. The numbers may also bode poorly for AT&T Mobility’s future once iPhone is also freed from carrier exclusivity in the U.S.
[UPDATE 8:37am EDT: MacRumors is reporting that AT&T’s CEO used 2nd quarter iPad figures, not the latest figures, which also helps explain the numbers.]
[Thanks to MacDailyNews Reader “Lynn W.” for the heads up.]
Based on my experience, if you compare the performance and coverage of the Verizon mifi vs the built-in AT&T 3G you would only use the AT&T system when in Europe or as a last resort. In real world use, I’ve found the Verizon network to have about 2x the performance.
How can you guys fall for the disingenuousness of the anal. This just a rehash of what Stephenson said in the last Q CC. Stephenson cannot divulge the current sales until apple reports. Just see how pacific eve Clement stated the facts. It was in the context of last Q. Reuters is playing the game WS has set. Both against apple and AT&T. Come the earnings, you will see pacific come out and say that Reuters did not get this right. But of course in today’s context the damage would have been done in terms of the PPS for both apple and AT&T.
Don’t have my cell service with AT&T, but they do have a new customer in me for the unlimited internet access for 30.00 bucks, so count me in amongst that half a million.
The only problem I’ve had was handled with great courtesy by the Customer Service rep who helped resolve it and I’ve been mighty impressed with the reception and bars not only around town, but also in my home which happens to be in a zone… the ‘Twilight Zone’ and yet 5 bars max to 3 bars worse.
Almost tempted to buy iPhone 4 and switch to AT&T, but having an iPhone with the small screen and another internet payment would be just a mini me gadget, that right now I don’t need.
So AT&T got me as a customer anyway…
Now if Apple would release and AT&T support a dumb smart phone that one could enjoy the hi-tech UI of iOS and just have a phone!
If I had an iPad I’d try the Virgin Mobile mifi device. The price is right and it’s pay as you go.
By the ways far as improvement in the job market, there will be none so long as the gouging in the commodities casinos, ICE and Nymex., conitnue. Operating costs for boil are less than $9 per barrel even in the deepest parts of the gulf or north sea. Oil is overpriced by at least 50 per barrel and is a drain of 900 million dollars a day in discretionary spending. If you include the multiplier effect it is a 3 billion dollar a day hit to the economy ( trillion dollars a year). Add other commodiy gouging in copper, corn, wheat and sugar, the effect to the consumer is horrendous.
I use the Verizon MiFi, which generally works great, though it’s a little expensive and a little bit of a hassle to bring an extra device everywhere I take the iPad–and to keep it charged. That said, I find it hard to believe that enough people are doing this to account for all the 3G iPads that have been sold. Also, if I had it to do over, I’d like to give the new, unlimited Virgin MiFi a spin.
In my opinion … people are simply using their iPads on WiFi at home, for the most part. I suspect the only reason that the carriers were even willing to provide stand-alone data service for the iPad was that they determined that it wouldn’t be used much away from home. One thing’s for sure, except for with the iPad, you can’t get stand-alone data from any carrier, anywhere. Not without having a pricey voice plan in place first.
Screw tethering. It’s not worth it, and sacrifices one of the best things about the iPad – it’s size and portability.
I sprang for the 3G iPad, but I haven’t felt the need to get the ATT service. As it turns out I am often in a WiFi area and then when I am not, I just use my iPhone to check mail instead.
I bet many people who have purchased the 3G iPad, who also own iPhones, found the same balance.
Bring back unlimited data then everyone would be happy. Maybe you would get more customers despite the recession. 5g data cap is crazy. The mifi is a pos device too without unlimited data. I’m glad I’m grandfathered in with the unlimited plan but everyone I talk to always complains about the data price and the data cappage. That they would gladly buy an iPad if they had a reasonable price with data.
So only 1/2 million people rich enough in the U.S. able to afford a 3G iPad on AT&T’s slow poke network?
Why am I not surprised?
If att had not switched to the capped data plans they would have more users signing up their iPads for their cellular service. They may claim to have made the data plans more affordable but they are more like restrictor plates in Nascar. The iPad was made to consume media more than e-mails. How many movies/TV shows, apps/app updates and songs would you buy on a capped data plan? Would you use your Pandora or Netflix app on the wild or would you rather just wait until you got the nearest free Wi-Fi network or the DSL service that you are already paying for at home? Why spend 25.00 (2GB) to 55.00 (5GB) dollars unless you are planning to travel or require to be connected every minute that you are away from Wi-Fi? Most likely you also own an iPhone with a capped data plan if you were not lucky enough to get the unlimited 30.00 plan. If you sign up for the so called tethering you would only be splitting your media consumption between your two devices. And if you are a business customer you pay 40.00 for the same 2GB cap when you used to pay 45.00 for the unlimited plan.
I have a Verizon express card for my laptop and the 3G on my iPad is way better. I still don’t know why people like Verizon.
I have my 3G iPad with me at work so I can surf without using the company net. I have the unlimited data plan on it so I was able to downgrade my iPhone data plan to the 200 Mb one and save a little money.
For some reason I got the Unlimited plan a few days after the termination date of the 7. Was going to cancel after getting back from a trip in the 30 days of that but been keeping it going due to being very handy esp for on the fly updates for the GPS software and a internet/email link I uses when visiting clients. That instant on is very handy.
That number seem very low even counting in wifi, myfi’s etc. Know that have sold that many but how many 3G are there running around? Or how many iPads are roaming on T-Moble?
Devices like Virgin Mobile Broadband’s products are thankfully killing AT&T. Virgin Mobile has the lowest prices, unlimited data, and NO CONTRACTS!!
@Macalope, I think you’re right. I just use my iPhone instead, but what a shame. I don’t need data on the go that often but when I do the iPad would be so much better.
Now that I think about it my iPhone is on WiFi 95% of the time too.
The data rates are just too high for what I (and probably most users) actually use.
Wouldn’t AT&T be better off charging $4.99/month, but having all the iPad users on board?
I went for the AT&T contract, but I wind up in wifi areas, mostly. Upon occasion, I look up and see I’m on 3G. It’s a rare happening, but I’m grateful for the seamless backup. The signup was seamless and painless, as well.
If they allow tethering with the iPhone, iPad subscriptions will drop even farther I would think.
That’s why I got the Wifi iPad instead of 3G. I know 3G is the better deal but WiFi does the job for me.
PLEASE ISSUE A REVISION THAT LOADS ON LAUNCH AND DOESNT CRASH? PLEASE?!
WHEN Apple does open up with an iPhone for Verizon and 25% jump ship (as previously noted,) plus a good portion of current Verizon users jump on the iPhone . . . will we finally see a price war, or at least a backing down of the arcane business practices between companies of the phone industry?
In other news: some Dutch carriers – the ones that do not carry the iPhone – are now offering you a free 16Gb iPad on top of a free LG Idunnowhat not-so-smart-phone if you would Please Please Please subscribe to them for just 2 years for something like € 15 per month.
They must be getting really nervous to start to make offerings like that, where the subscription barely covers the price of the devices you’re getting…
Of course it has nothing to do with the success of the iPhone, of course not…
Who wants yet another monthly bill?
I can understand users buying a 3G iPad for the ability to connect via 3G on occasion, but I bet most users use WiFi the majority of the time.
Most homes, offices, restaurants and hotels have WiFi, so unless you need an always-on connection, why would you want to pay another $20+/mo bill?
Maybe this will force carriers to LOWER PRICES!
I don’t connect my 3G iPad through AT&T either. WiFi is fine unless I go on a trip to Europe. Then I’ll sign up for a few weeks.