Tuesday, March 6, 2012

Apple's next iPad may be 4G ready

SAN FRANCISCO / NEW YORK: Apple Inc is a bid to 4G equipped iPad will tempt more U.S. consumers to pay extra to watch high-quality video on the go, and in turn, give Verizon Wireless and AT & T Inc., a revenue boost.

Until now, Apple is a fan legion was reluctant to shell out extra money even for iPads with 3G connections. The cheaper Wi-Fi only model - with more limited Web access - are by far the top selling one today.

The newest iPad will be able to operate on high-speed 4G "LTE," or Long-Term Evolution network, according to a source familiar with the product. At speeds about 10 times faster than current 3G technology, which can go a long way to banishing the sometimes shaky video quality of old appliances.

Such a juiced-up mechanism would help to raise the telecommunications market if consumers catch on and can be enticed to pay more, some analysts say. The global tablet user base had reached 67 million in 2011 according to researcher Strategy Analytics.

"It will dramatically improve video consumption," said UBS analyst John Hodulik. "This is the device people want. They want the fastest speed. They want high-resolution."

Apple, AT & T and Verizon declined to comment.

The Cupertino, California-based consumer device company gearing up to unveil the iPad 3 on Wednesday, faster and better-equipped version intended to thwart growing competition from rivals such as Samsung Electronics Co. and Amazon.com.

The new iPad will be "critical" to Apple if it is continued to dominate the global market tablet, said Frost & Sullivan analyst, Phil Harpur.

"A lot will depend on how receptive the market is the new features offered by iPad 3, two of whom believed to be a quad-core processing and 4G-LTE capabilities," he said. "While IPAD 2 offered only a small incremental improvements, this time the market will be waiting for more."

The unveiling at the Yerba Buena Center for the Arts in San Francisco, where the company also introduced the last two iPad generations, will be chief executive Tim Cook's second major product launch, after the iPhone 4S unveiling last year in the company headquarters.

The smartphone was initially a disappointment as it was perceived to be mostly a software upgrade, but "Siri," his voice-enabled personal assistant technology, have helped to make it bestseller.

Cook once again be flanked by Apple's top supporters on Wednesday, when he kicks off a typically tight choreography show scrutinized by investors and industry insiders. On hand will probably be Apple's top marketing executive Phil Schiller, its head of internet services Eddy Cue, and software head Scott Forstall - the standard cast for big releases after the death of founder and consummate showman Steve Jobs last year.

Upgrade to Apple TV works?

The company, legendary for keeping its agenda under wraps, did not say what plans to reveal, but invited speculation with his cryptic event invitation, graced with a partial picture of the iPad screen, and the motto: "We have something you really have to do. And tact."

Some predict an update to the Apple TV, one of the rare company products that have not seen mass adoption. Jefferies analyst Peter Misek said the "see and touch" reference "very curious."

"An update of the Apple TV set-top-box can be as far away as an opportunity for ITV television set as a reference to a large screen size," Misek said in a note to clients, adding that it was possible that Apple could announce a real TV in spite of not having a finished product.

Until then, it is the iPad 3 The 4G capabilities that can be commanding the firmest speculation.

iPad sales have doubled in the December quarter to 15.43 million units. The company sells about 55 million iPads since it was introduced in 2010, and recorded more than $ 20 million in sales and related services and accessories in fiscal 2011.

But dozens of new devices are set to launch this year, so Apple needs to stay one step ahead of his deep pocketed rivals.

Handset manufacturers including Samsung and Motorola Mobility already has LTE-capable tables available, so in a way Apple is already late to the game.

The Samsung and Motorola tablets running on Google Inc's Android software, which is fast gaining ground on Apple's IOS. Market of Android-based tables in the fourth quarter reached 39 per cent from 29 per cent a year ago, while the iPad the market slipped to 58 per cent from 68 per cent, according to Strategy Analytics analyst Neil Mawston.

But the early high-speed boards is not captured. They represented a mere 1 percent of total tablet sales in 2011, partly because they were expensive, Mawston said.

While Apple is not breaking new ground with LTE, it can play a big hand in the technology of carrying on the boards, due to the popularity of its iPad platform. The iPad 3 could also be helped by a recent expansion in the availability of LTE services, according to Mawston.

Both Verizon and AT & T has been upgrading their networks with LTE, but since Verizon Wireless had a head start in rolling out LTE - its first markets come on line in late 2010 - it has to have an advantage over AT & T, which launched its first LTE markets last summer.

Verizon's LTE network covers markets with a population of 200 million while AT & T covers 74 million. Sprint Nextel, the No. 3 U.S. operator, will offer LTE later this year.

One impediment to the success of the iPad 3 with the fastest connectivity could be a rising data service charges.

Carriers charging customers for data on per-use basis, which can quickly add up. For example, looking at 30 minutes of video on a daily basis on Verizon could add up to almost twice as much data downloads such as his monthly $ 30 service package provides.

If people really like how the new device works, UBS's Hodulik said they can not remember the allegations. Even if only 10 per cent more iPad users bought the 4G instead of the Wi-Fi version, it would help providers who do not subsidize the price of the iPad, Macquarie analyst Kevin Smithen said.

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