But forget the retailers; it’s the resulting competition between AT&T and Verizon that will be interesting to watch. How will they compete each other? They can’t reduce the device price, since Apple has that fixed — no discounts, unless they themselves offer it. So obviously, the differentiation between carriers will be data plans and connection options, though one or both might decide to throw in goodies such as special cables. Except that AT&T has one advantage, as discussed in the next section.

Device Options

Overall, there are six models of the iPad. One variable is memory size (16GB, 32GB and 64GB), and the other is a choice between a WiFi-only model and WiFi+3G model. AT&T will be offering all six models of iPad, since the 3G network used belongs to them. Verizon will be offering the three WiFi-only models, but to entice consumers over, they’re also offering a Internet connection bundle for each of the three models, the details of which are below.

Internet Connection Options

With the AT&T offerings, if you need to be connected to the Internet regularly, you’d probably want one of the WiFi+3G models. If a wireless network connection suffices, then a WiFi-only model will probably do, and is cheaper besides. For Verizon, you have a choice of just a WiFi-only iPad, or getting a bundle that includes a MiFi 2220 mobile hotspot device. Normally, a hotspot device might be awkward to carry around, though MiFi 2200 is said to be quite small and pocketable. What’s more, the MiFi 2200 lets you connect up to five devices to the Internet.

There are other options. Myself, I use a different Verizon option, based on what was available when I got my iPad (on its launch day in April 2010). I have a Palm Pre Plus smartphone that has an embedded mobile hotspot feature, which is free of charge and lets me connect up to five devices to the Internet. The only drawback is that if I’m on the go and am not carrying a car charger (or my iPad or iPhone is already plugged into the car charging socket) or don’t have an AC outlet to charge from, then the Pre’s battery burns out extremely fast while the mobile hotspot feature is enabled. I’ve never kept an accurate time, but it feels like about an hour before the battery is dead, whether I’m using the Internet connection or not. I’m not mistaken, I’m paying $40/month for the data plan (5GB) and $40/month for the cell phone minutes — which I never use. My understanding is that Verizon also has Android phones that have mobile hotspots, if you don’t want a Palm Pre Plus.

iPad Data Plans: A Comparison

In retrospect, had the iPad 3G been available on launch day, I would probably have purchased that. It’s much more convenient than carrying my Palm Pre Plus and its charger around (as I already carry my iPhone and sometimes my iPod Touch as well). However, for those consumer who don’t want to use AT&T, it’s important to note that Verizon currently has the more cost-effective data plans:

• Verizon’s MiFi 2200 data plans: 1GB for $20/month; 3GB for $35/month; 5GB for $50/month. Overage charges are $10 per GigaByte for the two top-end plans, and $20 per GigaByte on the low-end plan. Verizon is offering these special MiFi rate plans only for new iPad purchases and not for other MiFi use. (Note: normal Verizon rates are are actually higher than AT&T: 250MB for $35/month and 5GB for $60/month. These are special iPad bundle rates.)
• AT&T: 250MB for $14.99/month (about 3 times Verizon for 1GB worth); 2GB for $25/month. (Had AT&T stuck with their original $25/month “unlimited” plan for iPad, they would have had the best rate.) AT&T will also offer iPads free access to their 23,000+ WiFi hotspots in the USA.

So Verizon’s data plans are much cheaper on a per-GB average. Normally, Verizon charges $299 for a MiFi device costs $299 or significantly less if you sign a new 2-year contract, but they’ve dropped the cost to $130 and dropped data plan rates for their iPad bundles. Their data plans are month to month, but you cannot buy an iPad “now” then go back later for a MiFi 2200 and expect the bundle rates. AT&T’s data plan also does not require a contract, but the three 3G models do cost $130 more than their WiFi-only counterparts.

Which Carrier Should You Choose?

Confused yet? It’s a bit difficult to recommend a carrier here. I use both AT&T and Verizon, but I am a mobile apps developer, so my needs are different than for most iPad users. It really depends on how you would use your iPad and whether you need to connect other devices. A 3G model is more convenient but binds you to AT&T. Verizon’s iPad bundles let you connect multiple devices, but battery power would likely be less than the iPad’s relatively long battery life, even in use. (Note: Apple’s Verizon press release says the MiFi 2200 “provides up to four hours of active use and 40 hours of standby time on a single charge.”)

For businesses that plan to have employees use the device for internal corporate use, WiFi-only models might suffice if a wireless network is always available. If an employee is will be “out in the field,” then it’s up to either cost, convenience, connection needs or carrier preference. (Don’t forget AT&T’s domestic network of 23,000+ free WiFi hotspots.) The same reasoning applies to individuals considering purchasing an iPad.

What This Means for the Future

Now of course the fact that Verizon will carry the iPad is refueling rumors that a Verizon iPhone is coming in 2011, and if that’s true, I wouldn’t be surprised if they offer Internet tethering, even if AT&T will not. What do I think? Well, it seems to me that Apple is starting a new, open relationship with Verizon and that that will very likely lead to other joint offerings. In other words, a Verizon iPhone will eventually come, once Apple is happy with Verizon’s cellular network. Apple needs to diversify U.S. cellular provider coverage and cannot afford to lose more ground in the U.S. to Android phones.

Whichever carrier iPad buyers go with starting Oct 28th, the percentage of American adults owning media tablet devices is going to climb from the Pew Internet’s current estimate of ~4%, and iPad sales will be a significant part of that. Gartner, Inc., feels that, worldwide, nearly 20 million units of media tablets (aka slates) will be sold in 2010, nearly 55M units in 2011, and over 208M units worldwide in 2014. Gene Munster, an analyst at Piper Jaffray, recently predicted that iPads alone would sell 21M units in 2011 — nearly half of Gartner’s total for all types of media tablets — a number that’s up from his initial estimate of 14.5M iPad units worldwide.

The net result of this is that mini notebook sales will suffer. If that means consumers start to use the iPads or other media tablets more often, there will be an increased demand for touch-based tablet software. This is supported by the prediction that larger media tablet devices will have an important role in the enterprise. In fact, AT&T plans to sell iPads directly to the enterprise. Once a multitasking version of Apple’s iOS mobile OS is available for the iPad — which will allow users to run several apps simultaneously, the device will have significantly more value in the enterprise.

Need advice on an iPad strategy for your business? Just want to know how you can leverage the mobile platform in general? Feel free to contact us to discuss your app idea or mobile campaign needs.

Not sure I’d ever take the risk of trying one of the last solutions: mounting the iPad on your bedroom ceiling, above your head, for who knows what purpose. Sounds a bit too risky, but most of the other solutions seem workable. Does anyone know if velcro efficiency is affected by steam? Of course, as Rosten says, the video shows the possibilities, not necessarily practical solutions.

iPad + Velcro from Jesse Rosten on Vimeo.

Currently, no less than Sony, Google, Nokia, RIM and BT (British Telecom), are considering releasing an iPad competitor, according to various online sources. Dell’s Streak tablet (5″, 7″, 10″ versions) will be out fairly soon, especially in Europe. HP just bought Palm and seemingly scrapped their Windows 7 tablet project shortly afterwards. I wouldn’t be surprised if they soon have a tablet with Palm WebOS out in the future. And of course there are a while slew of other companies with tablet devices already out, including Fusion Garage’s JooJoo and Aigo’s N700.

For the sake of usability testing alone, I’ve spent a considerable amount of time with my iPad, taking it with me whenever I leave the house. Since it’s a WiFi-only model, I also take my Palm Pre Plus phone for it’s Mobile Hotspot tethering feature, in case there’s no WiFi wherever I’m going to be. While I have done “in the field” testing all that extensively since Apr 3rd (the day iPads were first available), I have found that the iPad is definitely not a laptop or even a netbook replacement, but for what it does do, it does quite well.

Yes, there are a number of limitations that the current iPad has, but app and OS limitations will eventually be dealt with, and it probably won’t cost much if anything to upgrade. (Though there are rumors that iPads will only be allowed one free major OS upgrade.) Hardware limitations are a different story, but numerous sites are reporting their findings that the new iPad USB camera connection kit actually supports far more than cameras, including USB keyboards and even external hard drives. So some of the hardware limitations are being handled already, albeit often by third parties, not Apple.

Now until I do some more thorough usability testing, I don’t want to write too much about the pros and cons just yet. However, Michael Gartenberg of Altimeter Group carried just his iPad around for two weeks, and wrote over at Slashgear about his ten iPad lessons learned — much of which I’ve also found to be true. The most prominent feature is that the battery lasts so incredibly long, depending on your usage. (The drawback is that my Palm Pre Plus runs out of juice long beforehand, so I sometimes find myself without a wireless connection for the iPad, if I’m away from home the whole day or an entire weekend.)

While an iPad is not a replacement for a laptop or netbook for most people, it is still an amazing device that lets me take care of running my business while I’m away from my home office. For any tasks that it can’t do well, I reserve for a netbook that my wife otherwise uses, or for my MacBook Pro when I get home.

The iPad also has numerous other uses that just aren’t suited to netbooks and laptops, including being used as an inflight entertainment system, which Bluebox Avionics is doing. In fact, web video browsing was going to be one of the primary personal uses of my iPad, but iPad-enabled video content is still lagging. But for longer flights, with video content already loaded, the iPad could make for a great entertainment system. Sound quality especially via headphones is superb, and I say that even as a long-time audiophile. (It means more airlines could offer this extra without having to upgrade their airplanes, possibly reducing airfares?)

Still, For me, the iPad has been worth every cent, and that’s before I’ve even acid-tested it with my own custom apps — which are still a glimmer in my eye at the moment. It might be a relatively costly device, but for the workflow it offers and what it does well, it’s worth it.

If you’re interested in knowing more about what a custom iPhone or iPad app can do for your business, please contact us.

So how much video online uses H.264? All Things Digital quotes MeFeedia, a video search engine, who say that H.264 makes up only about 26% of online video content. However, TechCrunch quoted Encoding.com, who claim a figure of 66%, and blinkx, who claim 67%.

Eiteher way, these figures put the lie to Apple’s claim, but several TV broadcasters are claiming to be converting their online video content to be iPad-enabled, and other content providers are likely to follow suit. There may only be about a million iPads sold to date, but there mid-double digit millions of iPhones out there, and if a Verizon iPhone does in fact come out, many more millions of iPhones might sell to the increased consumer base. In other words, HTML5/ H.264 video content is a trend that will continue.

TwelveSouth offers an iPad version of their BookArc for MacBook. BookArc for iPad is rugged, arc-shaped stand that holds an iPad upright for easy viewing. If you pair the BookArc ($39.99) with a Bluetooth keyboard — such as the one from Apple, shown in the picture — the result is like having a mini iMac, but with touchscreen ability. The BookArc will also work with the iPad case from Apple.

The ClamCase is quite different. It takes what looks like the iPad case that Apple offers — which is actually pretty nice; I have one — and goes it one better by including a built-in Bluetooth keyboard, essentially turning it into a mini-laptop or netbook. What’s more, the case flips over, can be stood upright, and can be set on angle similar to what the Apple iPad case offers. See the pictures below for a better understanding.

Of course, neither solution can use a Bluetooth mouse (believe me, I’ve tried on my iPad), so I’m guessing that they are better used for either typing in information or longer viewing of content such as videos. The BookArc is already available, but the ClamCase is coming Fall 2010. No pricing on the ClamCase yet.

Now, as much I love my iPad, the cynic in me thinks the BookArc makes sense but unless the Clamcase is relatively inexpensive, why would you just get a netbook computer? The current generation of iPad lacks many of the features netbooks have as standard, including USB ports. However, if you’ve used an iPad and understand what’s so brilliant about it, then you’ll know how it also offers features that netbooks just don’t have, namely a touchscreen and supporting applications. I’m inclined to think that both of these accessories can be valuable in the right situations. However, holding an iPad in your hand and taking full advantage of the touchscreen features is one of its highlights, and any sort of accessory is going to detract from that.