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Quick-Take: Buying an iPad2 on Friday

March 10, 2011

New iPad2, launcing in White and Black "on day one"

If you’re chomping at the bit to buy an iPad2 on launch day, the question remains: which one to buy? There seems to be many options and ways to go, but ultimately this will end-up being a personal decision. However, there is an economic and functional rational that you should consider before coughing up nearly $1K on an arguably cool device.

Given the choices of models and network options, this should definitely NOT be an impulse buy, and I hope you look at it in a reasoned – if not somewhat giddy – way. Here are my thoughts for personal acquisition (not for businesses – you guys need to run POC for at least 3-6 months!):

Basically, there are three models: WiFi, WiFi+3G/ATT & WiFi+3G/Verizon, with three flash variants of each – 16GB, 32GB & 64GB – and two color variants of those – black & white. That’s a total of 18 different SKU’s for iPad2. So here’s how the process breaks down to me:

  1. Since WiFi/Bluetooth is the same on all models, choose first between 3G (includes aGPS) or WiFi-only (no aGPS);
    1. Choose carrier between ATT & Verizon (either are month-to-month):
      1. ATT offers two options for iPad2:
        1. $15/month for 250MB/month; with automatic charge of $15/250MB overage;
        2. $25/month for 2GB/month; with automatic charge of $10/1GB overage;
      2. Verizon offers four options for iPad2 WiFi-only + MiFi:
        1. $20/month for 1GB/month; with automatic charge of $20/GB overage;
        2. $35/month for 3GB/month; with automatic charge of $10/GB overage;
        3. $50/month for 5GB/month; with automatic charge of $10/GB overage;
        4. $80/month for 10GB/month; with automatic charge of $10/GB overage;
        5. Note: MiFi device is free only with a 2-year contract.
      3. Verizon offers four plans for iPad2 WiFi+3G:
        1. $20/month for 1GB/month; with automatic charge of $20/GB overage;
        2. $35/month for 3GB/month; with automatic charge of $10/GB overage;
        3. $50/month for 5GB/month; with automatic charge of $10/GB overage;
        4. $80/month for 10GB/month; with automatic charge of $10/GB overage;
    2. Choose memory size; 3G Models will cost according to their memory size regardless of carrier:
      1. $630 for 16GB, black or white;
      2. $730 for 32GB, black or white;
      3. $839 for 64GB, black or white;
    3. Choose color;
      1. Black;
      2. White;
  2. For WiFi-only models, you’ll give-up accurate location (no aGPS) but save money (see MiFi above for mobile access):
    1. Choose memory size; 3G Models will cost according to their memory size regardless of carrier:
      1. $630 for 16GB, black or white;
      2. $730 for 32GB, black or white;
      3. $839 for 64GB, black or white;
    2. Choose color;
      1. Black;
      2. White;
  3. Choose how you want to purchase:
    1. In-store (5PM local time):
    2. On-line (1AM PST):
  4. Enjoy iPad2 nirvana!

SOLORI’s Take: Steve Jobs really wants to see you on-camera and in line. Apple made a point to require retailers to coordinate sale starts at 5PM local time to be able to maximize “free” advertising benefits based on local, mobile news feeds from “high demand queues” at retailers. There’s no discount for purchasing after standing in a retail store line, so why queue-up without compensation just to be part of the iPad2 marketing push? Buy from an on-line retailer (or wait) and avoid the lines.

As for the model and plan, economically the 16GB iPad2 makes the most sense. If you need 3G but have no interest in using your iPad as a navigation unit while you drive, get MiFi and get the benefit of being able to use it with up to 5 other devices (laptop, iPad1, Android tablet, etc.) If you’re replacing your 32GB+ iPad and laptop (good luck) in this purchase, you may go all out, but don’t be surprised when buyer’s remorse sets-in a month or so hence. Then it comes down to 3G variant: ATT has more global reach (see link above), but beware of “data roaming” charges, while Verizon has a bit better $/GB rates (see above).

If you choose to que-up and volunteer for Steve Jobs unpaid marketing army, good luck and stay safe. According to BestBuy’s playbook, you’ll get a “ticket” for the model you want in line. There will only be tickets enough for the actual models they have and they’ll likely only know what that list is one to two hours before 5PM local time. When all tickets are gone, they’ll issue standby tickets for the next day, etc. At BestBuy at least, you’ll need to leave a $100 deposit with your standby ticket and it will be issued in the form of a $100 gift card usable towards your iPad purchase.

[Update: SOLORI’s iPad2 ordered for the lab at 2:53AM CST from ATT on-line – black, 16GB WiFi+3G, 2GB/mo. data plan. Verizon, Walmart, Target all show iPad2 as unavailable on-line and in stores at 5PM.]

[Update: On-line supplies of iPad2 started at 2-3 business day promised delivery and had gone to 2-3 week delivery by 9:30AM PST.]

[Update: 15-Mar-2011 – USPS delivered iPad2 – 2 business days achieved.]

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