Summary of survey findings into UK consumers' appetite for more aggressive iPad subsidies. Will consumers accept a high monthly subscri

1. So how much will you pay for an iPad?
Vision Critical Omnibus Research
November 30 2010

2. The iPad has achieved respectable penetration in the UK
It only launched 6 months ago
UK iPad ownership, November 2010
iPad owners
the rest
But its share of mind is far higher than its adoption
So is there pent-up demand that more accessible pricing can
unlock?
Source: Vision Critical UK omnibus, November 29th / 30th 2010
Base: 2004 UK adults 18+, nationally representative
Question: Do you own an iPad?

3. Yes, much more demand exists
But price is a clear barrier to further take-up
I'd love an iPad
but they're too
expensive
0% 20% 40% 60% 80% 100%
Disagree strongly Disagree a little Don't know Agree a little Agree strongly
So can mobile operators use device subsidies to open up the
iPad to a bigger market?
(And drive take-up of long term data contracts)
Source: Vision Critical UK omnibus, November 29th / 30th 2010
Base: 1941 non iPad owners
Question: How much do you agree with the following statements ... ?

4. We asked non iPad owners how likely they would be to buy one
A 16GB iPad with a 3GB monthly 3G mobile data contract
At the following price points
• £529 up front, £15 per month, no minimum contract
• £249 up front, £20 per month, 24 month contract
• £199 up front, £25 per month, 24 month contract
• £99 up front, £35 per month, 24 month contract
• Free iPad, £45 per month, 24 month contract

5. There is a strong case for offering consumers a range of subsidy
and contract levels
Likelihood to buy iPad / 3G contract at different price points
£529 up front, £15 per month, no minimum contract
£249 up front, £20 per month, 24 month contract
£199 up front, £25 per month, 24 month contract
£99 up front, £35 per month, 24 month contract
Free iPad, £45 per month, 24 month contract
0% 50% 100%
Very unlikely Unlikely Don't know Likely Very likely
‘Likely / very likely to buy’ jumps from 5% (outright purchase
cost) to 13% (free device / £45 monthly contract)
Source: Vision Critical UK omnibus, November 29th / 30th 2010
Base: 1941 non iPad owners
Question: Q4. If the apple iPad were available on the following contract deals from a mobile phone network,
how likely would you be to get each one?

6. Younger consumers in particular are drawn to ‘free’
Likelihood to buy free iPad / £45 monthly 3G data contract
age 55+
age 35-54
age 18-34
0% 50% 100%
Very unlikely Unlikely Don't know Likely Very likely
‘Likely / very likely to buy’ reaches 21% among this age group
Source: Vision Critical UK omnibus, November 29th / 30th 2010
Base: 1941 non iPad owners (531 18-34; 705 35-54; 705 55+)
Question: Q4. If the apple iPad were available on the following contract deals from a mobile phone network,
how likely would you be to get each one?

7. But don’t expect to convert everyone
There’s plenty of scepticism and confusion in the market
The iPad is
pointless and
stupid
I don't know
what I'd use an
iPad for
0% 20% 40% 60% 80% 100%
Disagree strongly Disagree a little Don't know Agree a little Agree strongly
Source: Vision Critical UK omnibus, November 29th / 30th 2010
Base: 1941 non iPad owners
Question: How much do you agree with the following statements ... ?

8. And despite the widespread love, even some early adopters
suffer from buyers remorse
I love my iPad
My iPad was a
waste of money
0% 20% 40% 60% 80% 100%
Disagree strongly Disagree a little Don't know Agree a little Agree strongly
Source: Vision Critical UK omnibus, November 29th / 30th 2010
Base: 63 current iPad owners; warning – low base, indicative only
Question: How much do you agree with the following statements ... ?

9. For more information contact Mike Stevens, Senior VP – Research Services
email: mike.stevens@visioncritical.com
tel: +44 207 065 7292