Apple launches iPad tablet device

SAN FRANCISCO — Apple Inc.
put an end to months of speculation on Wednesday when the company
unwrapped the iPad, a new touch-screen tablet computer that Chief
Executive Steve Jobs said would revolutionize how people access their digital content and change the future of personal computing.

Jobs introduced the device at an event in San Francisco. The iPad will go on sale in 60 days and start at $499 for a 16-gigabyte model without a 3G wireless connection. In 90 days, the 3G tablets will be available, topping out at $829 for a 3G device with 64 gigabytes of memory.

The iPad has a 9.7-inch screen and looks similar to an enlarged version of Apple’s popular iPhone.

Jobs said the iPad is designed to fill a gap between the iPod touch and iPhone and its MacBook line of laptop computers.

“We asked if there was room for a third category in
the middle, something between a laptop and a smart phone. To create a
new category, it needed to be far better at doing some key tasks such
as browsing the Web, doing e-mail, sharing photos, watching video,
gaming and reading e-books,” he remarked in his presentation.

Jobs also took a dig at netbooks, the ultrasmall
laptops that other companies have released in an attempt to serve this
market. “The problem is netbooks aren’t better at anything. They are
just cheap laptops,” he said.

Apple announced a range of prices for the device.
The iPad will come in versions with only WiFi connectivity, and those
versions will range from $499 for 16 gigabytes, $599 for 32 gigabytes and $699 for 64 gigabytes. Each of those can come with a 3G wireless service from AT&T Inc. for an extra $130.

The data plans for the 3G service range from $15 for 250 megabytes of data per month to $30 per month for unlimited data.

Apple said the iPad battery will run up to 10 hours on a single charge.

Gene Munster, who covers Apple for Piper Jaffray,
said he believes that the iPad will gain wider consumer acceptance in
2011, after Apple likely cuts the price or updates the next version of
the device. Munster said he would like all versions of the iPad to be
closer to $400 for more consumers to feel like they could afford a top-line 3G version.

Still, Munster said Apple has its eyes on the future of mobile computing with the iPad.

“They do need to bring the price down more, but the
point is they made a statement with this, even if it doesn’t go
mainstream for a year or more.”

Apple shares turned higher and closed up 1 percent to $207.88
after the event. The stock has more than doubled in the past 12 months
— in part due to speculation for the possibilities of the device.

The iPad is being targeted at media uses such as
listening to music, watching movies and playing video games. The device
is also geared heavily toward readers, with newspaper publishers in
partnerships with Apple to market their content on the device.

One new competitive area for Apple is books. In
association with the new iPad, Apple has launched an online bookstore,
through which users can purchase and download books. That could make
the device a threat to the fast-growing market for e-readers, such as
the Kindle from Amazon.com Inc.

“I think Amazon definitely has to be concerned,” said Tim Bajarin,
president of technology-research firm Creative Strategies. “All the
e-book distributors are going to have to reevaluate their platforms and
how they appeal to the public.”

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