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Thread: Analyst: LTE iPads Will See Decaying Demand

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  1. #1
    MMi Staff Writer Akshay Masand's Avatar
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    Default Analyst: LTE iPads Will See Decaying Demand


    As the wireless carriers in the U.S. continue extending their LTE networks across the country, a recent market analysis is suggesting that most users will eventually choose not to buy LTE iPads and other 3G/4G-enabled tablets. The research firm CCS Insight, says the demand for iPads and other tablets that have built-in mobile broadband support will continue to drop the next four years. The company says that Apple and other tablet manufacturers are likely to reduce the number of tablets they produce with built-in cellular connectivity as a result of this predicted change.

    According to the estimates, the drop in the number of devices with cellular connectivity is going to be roughly 48% in 2011 to about 37% by 2016. The company notes that the majority of the users that purchase iPads/tablets with mobile broadband prefer to use Wi-Fi and rarely use 3G/4G data services. Most users donít regard cellular connectivity in tablets as a must-have feature, especially given the current price of tablets and the mobile data subscriptions.

    The availability and attractiveness of multi-device tariffs from mobile operators, of public Wi-Fi networks, and the difference between the retail prices of cellular and Wi-Fi only tablets are the three factors that will help determine the share of cellular-enabled tablets in the future. Another study which was conducted earlier this year by a research firm named Localytics, indicates that only 6% of iPad sessions were made over 3G or LTE connections. When broken down further, it showed that users with LTE iPads connected using LTE roughly one-third (36%) of the time. This goes to show that 3G/4G connectivity on iPads isn't that popular to begin with. The data here backs up what CCS Insight is predicting for the future.

    One thing to note though is that both AT&T and Verizon have launched their shared data plans at this point and they havenít been available long enough to make any analysis on how they may impact the markets for tablets and smartphones in the immediate future or long-term. Shared data plans may certainly make LTE iPads more attractive than they previously were but itís uncertain as of right now. Weíll have to wait and see how things turn out in the future by being patient.

    Source: Fiercewireless, Localytics

    Twitter: @AkshayMasand

  2. #2
    My iPhone is a Part of Me mustard05's Avatar
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    If carriers weren't so greedy I wold have upgraded to a 3G/4G version of the tablet. Unfortunately, they expect an arm and a leg for basically nothing in return. It's sad but it is what it is.

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    iPhone? More like MyPhone Agent929's Avatar
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    Quote Originally Posted by mustard05 View Post
    If carriers weren't so greedy I wold have upgraded to a 3G/4G version of the tablet. Unfortunately, they expect an arm and a leg for basically nothing in return. It's sad but it is what it is.
    I completely agree with that, and to me that is the very reason the numbers are going to decline. I think the "Share Everything" plans that Verizon has and is coming to other carriers may have potential, but then again probably not because the plans include free tethering for all devices capable of it.
    War is my mission. Killing is my ambition.

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    Livin the iPhone Life
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    wait so as products get older they become less of a demand?!? WHAT!?

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    iPhone? More like MyPhone runey71's Avatar
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    Quote Originally Posted by Mrteacup View Post
    wait so as products get older they become less of a demand?!? WHAT!?
    Did you even read the article? It is nothing to do with older products reducing in demand. It was about consumers not wanting a mobile broadband option in tablets and preferring to use wifi instead.

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    What's Jailbreak?
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    Tethering is a much better (and much much cheaper) option for those few instances you have no WiFi available.

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    iPhone? More like MyPhone
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    I like 3G coz I don't have to tether have slow speeds but then again I only use 3g when I'm on trips and such if I'm home I use wifi so I can agree with this . Only 2 gb for 20 bucks is kinda sucky

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    Green Apple thomaspeter's Avatar
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    Quote Originally Posted by Eonhpi View Post
    I like 3G coz I don't have to tether have slow speeds but then again I only use 3g when I'm on trips and such if I'm home I use wifi so I can agree with this . Only 2 gb for 20 bucks is kinda sucky
    2gb for 20 bucks? That really sucks believe me! We need to have much much more than that at 20 bucks!

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    iPhone? More like MyPhone br8thw8's Avatar
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    I work out in the field where there is no WiFi so I regularly use my LTE connection on my iPad. Tethering might work but since I have an iPhone 4 I wouldn't get LTE speeds, plus it would eat my iPhone battery even quicker.

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    What's Jailbreak? bimmercub's Avatar
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    I really wish a company would step up and take smartphones and tablets to the next level by offering an usable replacement for the carriers minute and text plans. Imagine if the carriers simply offered apps that you could log into on any device that allowed you to make and receive phone calls using only data. I use talk tone and google voice for this now on my 3G ipad, and it works fine for me, but is not nearly reliable enough for mainstream use. Or how about a Bluetooth headset that has your subscriber info programmed in so it auto connects to which ever of your devices is in range and has the best signal and battery so your calls get routed through your ipad in the case that your iPhone battery died.

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    My iPhone is a Part of Me mustard05's Avatar
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    Quote Originally Posted by br8thw8 View Post
    I work out in the field where there is no WiFi so I regularly use my LTE connection on my iPad. Tethering might work but since I have an iPhone 4 I wouldn't get LTE speeds, plus it would eat my iPhone battery even quicker.
    it's just not worth the premium you have to pay monthly. it really isn't. I would/prefer to tether.

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    iPhoneaholic AUZambo's Avatar
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    I wonder if this study factored in the new shared data plans that are on the horizon. From what I've read it only costs an extra $10 or so to add a device to the shared data plan. if that's the case I expect an increase in the sales of 3G/4G/LTE tablets. I chose the WIFI only iPad because I didn't want to pay $100 extra for the 3G capability plus $30/month for data. If making data available on the iPad is only $10/month I will rethink that decision whenever I get my next one.

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    My iPhone is a Part of Me mustard05's Avatar
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    Quote Originally Posted by AUZambo View Post
    I wonder if this study factored in the new shared data plans that are on the horizon. From what I've read it only costs an extra $10 or so to add a device to the shared data plan. if that's the case I expect an increase in the sales of 3G/4G/LTE tablets. I chose the WIFI only iPad because I didn't want to pay $100 extra for the 3G capability plus $30/month for data. If making data available on the iPad is only $10/month I will rethink that decision whenever I get my next one.
    Im on an grandfathered in "unlimited" plan. If I was to switch I believe I Loose the unlimited. Would rather keep tethering.

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    My iPhone is a Part of Me luvmytj's Avatar
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    Of course people prefer free wifi over ridiculously high priced data plans. I am lucky enough to have AT&T unlimited plans on all my iPhones and one of my iPads. If I didn't I would have to drastically change my usage while on 3G as I travel quite a bit. Another bonus with a 3G iPad is the GPS function. Wifi pads have no true GPS capability and that sucks. I use Navigon on mine often. I will always choose 3G/LTE or whatever is current if I have the option.

  15. #15
    My iPhone is a Part of Me mustard05's Avatar
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    Quote Originally Posted by luvmytj View Post
    Of course people prefer free wifi over ridiculously high priced data plans. I am lucky enough to have AT&T unlimited plans on all my iPhones and one of my iPads. If I didn't I would have to drastically change my usage while on 3G as I travel quite a bit. Another bonus with a 3G iPad is the GPS function. Wifi pads have no true GPS capability and that sucks. I use Navigon on mine often. I will always choose 3G/LTE or whatever is current if I have the option.
    You have an unlimited plan. You are an exception to the rule. New users with a 3G/4G tablet have there wallets raped every month for a small amount of data. This article is about a lack of demand for those tablets, which I would bet relates to the high monthly prices demanded by the carriers.

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    true pnly reason i still have my plan with att on the new iphone is cause it grandfathered me in and im getting unlimited lte for $30 a month



    Quote Originally Posted by mustard05 View Post
    If carriers weren't so greedy I wold have upgraded to a 3G/4G version of the tablet. Unfortunately, they expect an arm and a leg for basically nothing in return. It's sad but it is what it is.

  17. #17
    Super Sweet Moderator thetoothfairy's Avatar
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    Frustrates me that people are being ripped off by such data plans today. I have unlimited on my iPad and phones however I bought my first iPad wifi only and when ATT announced they were not going to offer it anymore I went out and bought another iPad just so I could get the unlimited on it. So bought two iPads in a very short time to have unlimited.

    If the demand is not there for the next four years maybe just maybe they will be forced to change the data plans. If not looks like they will be loosing.

  18. #18
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    Super limited data plans and the fact that most people use their tablet at home where wifi is available. Its not really that hard to see.

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    Green Apple
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    The one thing I like now is that most if not all the cable tv/internet providers in new york city have hotspots... So as long as your paying for your home cable/internet service, they have wifi in selected spots around the city and are free [you just need your ID info].. Im in the Bronx which is mostly Optimum or Verizon provider, but still see Time Warner Cable under my wifi, which is only manhattan and brooklyn, im not sure about queens. but they are putting up more hotspot as we speak in all boro's. Now people aren't going to be crazy about a cellular connectivity until an unlimited plan was to ever come out [likely no time soon] and for a decent price.

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    Livin the iPhone Life bigboyz's Avatar
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    Remember the days when mobile data was free..thanks to our beloved smart phones we now pay out the ***** for data and it is only going to go up. I believe i've stated before that before we know it, data charges will outweigh voice charges..only a matter of time. Supply and demand i guess..maybe we should stop using data? How can we..we are all already addicted to it haha!

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