Behind Your Business

As Apple gets ready to ship its Pads with AT&T as the exclusive U.S. 3G carrier, the wireless giant's CEO seems to be downplaying expectations by saying the tablet computer will be "largely a Wi-Fi-driven product."

The basic iPad with Wi-Fi will sell for $499, and consumers who want 3G connections will have to shell out an extra $130 and pay AT&T $30 per month for unlimited data, or $15 a month for a 250MB plan. They'll also have to wait an extra month for 3G-capable tablets.

No Strain on Network

At a Morgan Stanley tech investor conference in San Francisco on Tuesday, AT&T's Randall Stephenson said, "My expectation is that there's not going to be a lot of people out there looking for another subscription," according to news reports. Asked if he felt the iPad would strain AT&T's heavily burdened 3G network, Stevenson reportedly said, "I'm anxious to see the customer response and usage ... We think it's going to be a largely Wi-Fi-driven product."

Stephenson may have passed up a chance to build hype for AT&T iPad data -- which Apple CEO Steve Jobs said in January will be available on a monthly basis, contract-free -- but his assessment of low initial interest is on target, says Current Analysis consumer-devices research director Avi Greengart.

"For many people, this is going to be a device they use within the home, and in a disconnected fashion away from the home," said Greengart. "There is no question there is a class of buyer who wants the 3G. But I imagine the initial sales volume will be higher for the lower-priced model."

He added that Stephenson's comments were likely tailored for investment bankers. "If he said that the iPad was going to drive enormous 3G data usage, he'd be fielding questions about CapEx," Greengart said, referring to capital...