iPad 2 Demand Surpasses Original iPad By 40%iPad 2 Demand Surpasses Original iPad By 40%

Apple iPad 2 3G Teardown

A report published by RBC Capital Markets analyst Mike Abramsky shows that there's been a shift in the overall demand for the iPad 2 and in which models appeal most to would-be buyers.

According to a survey of 2,000 U.S. respondents, 28% said they were either very likely or somewhat likely to buy the iPad 2. That's up from 20% providing those same responses when asked about the original iPad in May 2010, signaling a 40% increase in overall demand for Apple's newest tablet.

The survey didn't provide any explanation behind the change in numbers, but it can be attributed to a range of factors. First, the iPad as a product in general is much more visible now than it was in 2010. It's everywhere. The iPad has simply entered the collective consciousness of more people across the U.S. at this point in time.

Second, the newer device is more appealing than the original. The original iPad lacked cameras, a key feature. The iPad 2 has two cameras for FaceTime video chats and video capture. It also has a faster processor, more memory, and a better selection of applications--especially high-visibility ones such as GarageBand and PhotoBooth. It also is compatible with two 3G networks (AT&T's and Verizon's) rather than just one.

Speaking of those carriers, the survey respondents clearly showed a preference for Verizon's 3G network over AT&T's. According to the RBC survey, 46% of potential iPad 2 buyers want the Verizon 3G iPad, while only 30% of potential iPad 2 buyers want an AT&T 3G iPad. Additionally, most of those looking at the 3G-capable iPads are eying the highest-end 64-GB model, which costs a daunting $829.

This is striking for several reasons. Verizon's network certainly has a better reputation than AT&T's, so that's one potential factor in this result. People may be under the impression that a Verizon iPad will work better than an AT&T iPad. But a Verizon 3G iPad can only be used on 3G in the U.S.; it can't roam onto the 3G networks of mobile network operators outside of the U.S. That limits the Verizon iPad's 3G usefulness.

The AT&T 3G iPad 2, on the other hand, can be used on 3G networks outside of the U.S., which means international travelers will have a better chance of finding wireless service when and where they need it. This is a significant for business professionals who do business overseas. AT&T's 3G network also is much faster than Verizon's, which has a direct effect on the iPad's Web browsing performance and download speeds.

The last bit of data discovered by RBC indicates that there has been a shift in demand for select Wi-Fi models of the iPad 2. In February 2010, most of those surveyed said they were interested in the 16-GB Wi-Fi model, which is the cheapest iPad at $499. The 32-GB Wi-Fi model ($599) ranked as the second-most-desired, followed by the 64-GB Wi-Fi model ($699).

This year, RBC says the 32-GB model is the most preferred, with the 16-GB model falling to second, and the 64-GB model remaining in third place.

Apple and its partners AT&T and Verizon Wireless have not provided any sales data for the iPad 2 yet, so no hard figures are available to corroborate RBC Capital's survey results.

Apple will release its most recent quarterly earnings report on April 20. Abramsky expects to see some big numbers from Apple, and predicts the company will report $24 billion in revenue on strong sales of the MacBook Pro, MacBook Air and iPad 2. Abramsky pegs iPad 2 sales at about 7 million.