Motorola Mobility on Wednesday announced its plan to try to further rival the iPad with a Wi-Fi-only version of its Xoom tablet. The device will sell for $599 and hit shelves on March 27.

Although its price tag is higher than the $499 sticker price of the entry-level iPad 2, by including 32GB of flash memory, Motorola was able to match the price of a comparably equipped iPad, which also sells for $599.

By lining up components ahead of time, analysts say Apple appears to have a cost advantage over its tablet rivals–an advantage exacerbated by the fact rivals have gone with higher-end parts, including more DRAM memory and higher-end cameras. By adding more flash memory, though, Motorola was able to stack up more favorably against the iPad.

Motorola also appears eager to take advantage of the Xoom’s brief window of exclusivity as the only tablet running the Honeycomb version of Android. The Xoom is Google’s “lead device” for the new Android version, but a flurry of Honeycomb tablets are on their way, including models from Samsung, LG and Toshiba, just to name a few.

Until now, the Xoom has come only in models ready for Verizon’s network, although AT&T has said it plans to offer the Xoom at some point. The Verizon model can also be used with Wi-Fi only without committing to Verizon service, but it carries a higher $799 price tag if users elect not to go for a contract. Apple charges $130 extra for iPad models with cellular data capabilities, with no service requirement.

The new Wi-Fi Xoom model will be sold at a number of big-name retailers including Amazon, Best Buy, Costco, RadioShack, Staples and Walmart and select Sam’s Club locations.

When the iPhone 4 came out, the USC film students created a series filmed using the phone. Now, with the debut of the iPad 2, the pair has created an episode edited on the tablet, using the new iMovie application.

“It still has a long ways to go in contrast to Final Cut or Avid, but if you’re on the go and need to shoot, edit, and upload something immediately from an iOS device, it’s perfect,” James told Mobilized. It also shows how the iPad is expanding beyond content consumption, at least in some cases.

James and her colleagues produced episode nine of their series, Goldilocks, by filming scenes on the iPhone as usual, and planned on editing it using their normal tools, including Avid and Final Cut Pro–at least until the iPad 2 was announced.

They waited in line for six hours at the Apple Store at The Grove shopping center in Los Angeles before getting their iPad on Friday and then spent from 6 p.m. until 5 a.m. the next morning editing the footage.

They even shot a couple clips using the iPad itself, although they said that the iPad 2 camera definitely pales when compared to the iPhone 4, let alone more professional gear.

Overall, they gave the latest Cupertino product a thumbs up. “As with any new piece of technology, there is always the immediate wish-list, although Apple packed a decent amount of features for our fingertips into iMovie,” James said.

However, it wasn’t all smooth sailing according to Fawaz Al-Matrouk, the team’s editor.

“On the desktop version of iMovie you can separate audio and video, you can’t do that on the iPad version – so we had to get creative with how we overlapped video with audio clips,” Al-Matrouk said. On the plus side, he said that “editing in iMovie was really cool.”

“It made editing feel like arts and crafts–like I was back in kindergarten again–because you’re just using your fingers,” Al-Matrouk said.

Given that the team produces Goldilocks for sale in iTunes, they are also happy about the new AirPlay feature, which lets content be zipped from an iPad or iPhone to other devices.

“Seeing Goldilocks on the big screen without wires and cables is super exciting and gratifying,” Koerbel said in an e-mail on Sunday night. “Deep down it’s every storytellers wish–to have our stories on the big screen and this is a huge leap forward for us in that direction. As filmmakers you used to have two options on getting your content to a big screen–festivals or studios. But that’s changing now and its such an exciting time to be in the world of visual storytelling.”

But the teardown that Wall Street and the investment community is waiting on is the one from the market research firm IHS iSuppli, whose team spent all day Saturday in a furious effort to dissemble a 32-gigabyte iPad 2 and estimate the cost that Apple paid for every component. They gave me an exclusive early look at their findings.

The point is to form a partial picture of the gross profit margin on every unit, a figure that Apple generally keeps to itself. This information is useful to investors and analysts who then factor the findings in with other assumptions they use to predict how much of a profit Apple is going to report over the next few quarters.

The headline of iSuppli’s teardown researcher is always the estimated bill-of-materials cost, which is the sum cost that it thinks Apple has paid for all the hardware inside the iPad 2. It doesn’t take into account the cost to develop software, or other things like packaging, shipping and distribution, or manufacturing.

In this case the estimates are for the 32-gigabyte, 3G version of the iPad which sells for $729, and there are two estimates, one for the AT&T version–$326.60, and one for the Verizon Wireless version–$323.35. Some of the wireless chips used in the AT&T version are a little more expensive or require an extra part. For example, on the Verizon version, GPS is integrated with the Qualcomm-made wireless baseband chip. On the AT&T version, an extra GPS chip had to be added along with the Broadcom-made Bluteooth and Wi-Fi chips, adding an extra cost of $1.50 per unit.

The baseband wireless chips were naturally different because AT&T and Verizon use different wireless technologies. Intel, the new owner of the former wireless chip division of Infineon, supplied the main wireless chip in the AT&T version, with supporting chips coming from TriQuint Semiconductor and Skyworks for a combined cost of $18.70.

Qualcomm supplied the main wireless chip Verizon version, with supporting chips coming from Skyworks, Avago Technologies, and Murata for a combined cost of $16.35. While there had been some speculation that Apple had used a Qualcomm chip in both versions, but it turned out not to be the case.

Aside from the wireless chips, the components are otherwise identical across both versions. Both sport Apple’s A5 chip, and iSuppli says that Samsung is still manufacturing it for Apple at a cost of $14. While there had been some talk in recent weeks that Apple was moving its chip manufacturing contract to Tawain Semiconductor Manufacturing Corp, there’s no evidence that it has made such a move, at least not yet.

The most expensive component by far is the touch-sensitive display, coming at $127. ISuppli says that the LCD portion the unit they tore apart was built by LG Display, but Apple is known to use other sources for displays, including Samsung, and possibly ChiMei Innolux. The glass assembly covering the display is thought to come from TPK or WinTek. ISuppli says costs on the display are going up because manufacturing yields on LCDs have been lower. Apple is also thought to be using a more expensive glue to improve the efficiency of the process of bonding a new thinner type of Gorilla glass to the display.

Samsung supplied Apple with the NAND flash memory used in the iSuppli sample, holding on to a relationship that goes back several years to the days of the first iPod nano, though Toshiba is also known to supply Apple with flash. It is the world biggest consumer of flash memory, after all. Elpida supplied the DRAM memory. ISuppli estimates the combined cost of memory, both flash and DRAM plus a Micron-made MCP memory chip at $65.70.

Then there’s a set of components seen in the iPad 1 that remained the same in the iPad 2. STMicroelectronics supplied the gyroscope and the accelerometer, and AKM Semiconductor supplied the electronic compass. Broadcom supplied touch interface chips, while Texas Instruments supplied a touch screen driver chip. Analog Devices supplied a capacitive touch controller.

Finally there are the two cameras. ISuppli hasn’t yet named the suppliers there, though the usual candidate is Aptina, the former camera unit of Micron, though it’s possible that Apple sources them from more than one place.

ISuppli’s estimates are a lot higher than the findings of another teardown shop, UBM Techinsights. The Wall Street Journal reported that UBM’s cost estimate is about $270, but that estimate was made before it conducted its actual teardown, and didn’t change once it had.

But, what strikes me is that while Apple is now ready with its second-generation tablet, many of its would-be rivals still haven’t made it out of the starting gate.

The only real tablet competition at the moment is from Android-based devices. Most of those, such as the Samsung Galaxy Tab and Dell Streak 7, are running a version of the software aimed at phones.

Google has its tablet-optimized version, known as Honeycomb, but only the lead device–the Motorola Xoom–has actually made it on the market ahead of the iPad 2. Other products, such as T-Mobile’s LG G-Slate and Honeycomb tablets from Samsung, Toshiba and others still have yet to get a firm ship date, let alone go on sale.

The same goes for other iPad rivals. Research In Motion has been talking about its PlayBook for months and showing glimpses of it at various events, but it has yet to announce when the product will go on sale. It has said it will hit the market this quarter, so it should be out soon, assuming no further delay.

Hewlett-Packard, meanwhile, has announced its WebOS-based TouchPad, but it too falls into the category of announced-but-not-shipped.

What does all that mean?

Well, for one thing, it means that Apple is virtually guaranteed of extending its lead in the tablet market, making the game of catch-up all the harder for those seeking to dethrone the iPad.

Apple also gets other benefits for being first to the party. Because it knew what was coming, Apple did one of the many things it does well–tie up supply of key components.

Apple makes only a handful of products and bets big on those it launches. Some years ago, the company recognized that most of those products would depend on flash memory and struck deals that ensured it would have enough supply. It has made similar moves on other components and said during last month’s earnings call that it was prepaying for a bunch of goods, though it declined to identify just which parts its rivals would be short.

And, because Apple is also a tough negotiator, it also often gets volume deals that others have a tough time matching. The result is that would-be rivals not only can’t get enough parts, they have a tough time competing with Apple on price.

While a few tablets are priced less than Apple, most of them lack the same screen size and other capabilities. Those that do pack similar components are often priced higher than Apple, further blunting their impact.

AT&T also plans to sell the iPad 2 in its retail shops starting at 5 p.m. on Friday–the same time it will go on sale at Apple Stores and other outlets.

“We are thrilled to offer iPad 2 in our stores and give customers several easy ways to connect to the nation’s fastest mobile broadband network,” AT&T emerging devices unit head Glenn Lurie said in a statement.

Verizon has said it too plans to offer its version of the iPad in stores, starting on Friday. Also, contrary to some reports, the company said it has no plans to charge an activation fee for iPads running on its network.

Both AT&T and Verizon allow customers to sign-up directly from the device, with no contract or up-front fees, on a month-to-month basis.

AT&T’s pricing plans, as laid out by Mobilized last week, start at $14.99 for 250MB of data. A second option for $25 a month, gives users 2GB of data.

Overage charges vary depending on whether a user is billing his credit card directly (prepaid) or having AT&T send a bill (postpaid). For info on that, and a comparison with Verizon’s charges, check out the chart from last week.

Verizon’s iPad service starts at $20 for 1GB of service, with plans ranging all the way to $80 a month for 10GB of data.

As for the iPhone 4 hotspot feature, AT&T is charging the same rate it currently does for tethering on the iPhone, and for hotspot capabilities on Android phones. The company requires customers subscribe to its $25 data plan and then charges $20 extra, which includes 2GB of additional data. Data use beyond that is billed at $10 per gigabyte.

I am going to buy an iPad 2 on Friday. Should I buy a Verizon or AT&T model? I have an AT&T iPhone and a Verizon MiFi device and I live in Washington, D.C.—but travel in the Northeast corridor and in rural Pennsylvania a lot.

A:

First, I should point out that with your Verizon MiFi, you could produce a Wi-Fi signal that would get you online even with a Wi-Fi-only iPad. So you don’t need to necessarily buy a model with either flavor of built-in cellular data. That assumes you get decent Verizon data speeds via the MiFi in the places you travel. If you want a cellular-equipped iPad 2, choose the carrier whose data service you have found to be the most reliable and the fastest where you live and travel.

Q:

Now that the file syncing service of Windows Live is going dark, and Windows Mesh is unavailable to us Windows XP users, what service do you recommend for syncing files among multiple computers?

A:

There are a number of contenders, but the one I use and find generally reliable is SugarSync, which does work on XP and other versions of Windows, as well as on Macs, and has apps for various mobile platforms. There are other well-known syncing services that work with XP, like Dropbox, that you might want to consider.

Both SugarSync and Dropbox not only store files online, but replicate them among PCs and Macs that have these services installed.

The main difference is, with Dropbox, you must store synced files in a special folder, while SugarSync syncs multiple existing folders on computers.

Q:

I have seen switcher boxes that allow you to have multiple HDMI cables going to/from one HDMI port. Do these work? Is there a loss of quality?

A:

These boxes are handy because HDMI is now the standard input for high-definition video and audio. And many users have more devices they’d like to connect via HDMI than they have ports on their TVs. I have used two brands of these boxes in my home, one that supported three cables going into one port on the TV, and another that supported four. In my experience, both have worked fine, with no loss of quality.

You can find Mossberg’s Mailbox, and my other columns at the new All Things Digital website, http://walt.allthingsd.com. Email mossberg@wsj.com.

The new iPad 2 is about a third thinner and over 10% lighter, yet speedier and more powerful than the original version, which sold a whopping 15 million units in its first nine months and, for many users, challenged their laptops as a digital tool. And it costs the same as the original.

I’ve been testing an iPad 2 for about a week and I like it a lot. While it’s evolutionary rather than revolutionary like the first model, the changes Apple has made are generally pleasing and positive, and the device worked very well for me.

Its improvements, including front and rear cameras, outweigh the few drawbacks and feature omissions I found. For most average, nontechie users, I would recommend it over the handful of tablet competitors I’ve tested so far, especially given that the entry price remains attractive.

The camera application on the iPad 2 demonstrated after an Apple event in San Francisco.

Dozens of tablet competitors are coming this year and I haven’t had a chance to test them. But the iPad 2, in my view, offers an excellent balance of size, functionality and price, and keeps Apple ahead in the tablet race, at least for now.

However, unless you are desperate for the cameras or feel you are laboring under the greater bulk of the original model, I don’t advise that iPad owners race to get the new version.

The first iPad, which can be upgraded to Apple’s latest iOS operating system, is selling for $399 while supplies last.

Airy, but Potent

Apple’s design wizards have made the new iPad feel much airier. Placed on a table between the original model and the new Motorola Xoom, it makes the others look bloated. Its top surface doesn’t even reach the side buttons on the original model. It has much more sharply tapered edges, and a new, optional, white color adds to the sense of lightness. While the 1.33-pound weight isn’t that much less than the original’s, I found the difference noticeable when carrying the device.

The iPad 2 is about a third thinner yet speedier and more powerful than the first.

Despite being slimmed down, the new iPad 2 still has the same vivid, large 9.7-inch screen, and claims the same lengthy 10-hour battery as the original. Like its current and planned competitors, it now sports a dual-core processor (a chip with two brains) and graphics that Apple says are up to nine times as fast.

But, despite gaining a faster processor, and the front and rear cameras, it still carries the same base price of $499, which competitors have so far found hard to match. Like the first model, it can range up to $829, depending on configuration.

Another crucial strength: The iPad 2 can run about 350,000 third-party apps, including 65,000 that have been optimized for the tablet’s large screen, rather than for the iPhone’s smaller display. Those numbers far exceed what is available for Google’s fast-growing Android platform—Apple’s main mobile competitor—that, according to Google, has 150,000 third-party apps, including fewer than 100 optimized so far for its brand-new tablet version.

I didn’t find the speed difference on iPad 2 to be dramatic, but it was noticeable. Apps launched and ran a bit quicker and the whole device felt very snappy.

It never crashed in my tests, unlike every Android tablet I’ve tested.

Like the original iPad, the new model can be purchased with just Wi-Fi connectivity or with added cellular-data connectivity, which doesn’t require a contract. But the iPad 2 offers a choice between AT&T and Verizon, for those who want cellular. My test unit used Verizon and got decent data speeds. Verizon’s fees start at $20 a month for 1 gigabyte of data. AT&T’s start at $15 a month for 250 megabytes of data.

The iPad 2′s cameras offer decent quality video, good enough for making calls, but disappointing still photos.

Drawbacks

The iPad 2 does have some drawbacks. Its cameras take mediocre still photos and Apple won’t even reveal their megapixel ratings. The company says they were designed for video, not still photography. They did capture decent video in my tests, including high-definition video from the rear camera and video good enough from the front camera for satisfying video calling. But, for a company known for quality, which bundles a new still-photo app with the device, the cameras are disappointing.

Also, the battery life, while very good, isn’t as strong as I found it to be on the first iPad. In my tough battery test, where I played full-length movies until the battery died, with the screen brightness at about 75% and both Wi-Fi and cellular radios running, the iPad 2 just barely exceeded Apple’s claimed battery life, dying after 10 hours and nine minutes. That’s 2.5 hours better than the Xoom did on the same test, but more than an hour less than I got from the original iPad, which clocked in at 11 hours, 28 minutes.

On the other hand, in mixed and non-constant use, with the screen set to turn off when idle for a few minutes, the iPad 2′s battery life was impressive. It easily went 48 hours between charges, even while downloading hundreds of emails and dozens of apps, songs, and books. During this period, I played a few light games, viewed photos, briefly streamed some video clips, read newspaper and magazine articles, consumed several chapters of books, frequently checked Twitter and Facebook, surfed the Web, and made a few video calls.

The new Apple iPad 2 shown during its launch event in San Francisco.

Another drawback I encountered was that the new, more tapered design makes it harder to plug cables and accessories—including the charging cable—into the main port on the bottom of the device, because it is now angled.

Despite being slimmer and lighter, the iPad 2 still has roughly the same length and width as the original, so it can’t compete with the Amazon Kindle, or the smaller seven-inch tablets, if you’re trying to juggle it while standing in a crowded subway.

Finally, there are two big omissions, one old and one new. The old one is that, like Apple’s prior phones and tablets, the shiny new iPad 2 still won’t play Adobe’s Flash video in its built-in Web browser. This is a deliberate decision by Apple, and puts its devices at a disadvantage for some users when compared with Android tablets, which can play Flash, or say they will soon, albeit not always well.

The other omission has to do with cellular data. The iPad 2 can’t use, or be upgraded to use, the new, faster 4G cellular-data networks being rolled out.

Apple says this is because the chips needed to do this are too immature, draining battery life. But the Xoom promises to be upgradeable to 4G later this year, though I have no idea how that upgrade might affect its battery life or monthly fees.

Software

Hardware matters, but software matters more and has been a key strength for Apple products. The iPad 2 doesn’t come with software radically different from the original model. But the latest version of its operating system speeds up the Safari browser, expands the capabilities of its wireless AirPlay system for beaming media to a TV using the $99 Apple TV, and lets you stream music and video from iTunes on a computer in your home. This all worked as advertised.

Apple also has two new $5 content-creation apps for the iPad 2: tablet versions of its Macintosh programs—iMovie and GarageBand. I used iMovie on the iPad 2 to create my own edited video, with titles, soundtrack and special effects. All of the apps I tried that worked on the original iPad worked on the iPad 2, only faster in some cases.

Accessories

Apple has a new $39 adapter that connects an iPad 2 (or iPad or iPhone 4) to an HDTV and mirrors what is on the device screen on the TV screen. It worked fine for me.

The company also has a very cool-looking, very slim cover for the iPad 2 that costs $39 in plastic and $69 in leather, and comes in a variety of colors. It attaches magnetically and turns the screen off and on when you close or open the cover. It also folds into a stand for the iPad and has a lining to keep the glass clean. Unfortunately, I found the cover’s magnetic latch came open in my briefcase, turning the screen on and wasting the battery. Also, the light gray color I had picked up smudges.

The Bottom Line

As new contenders move into the field, Apple isn’t likely to keep its 90% share of the booming tablet market. But the iPad 2 moves the goal posts, by being slimmer and lighter, boosting speed and power, and holding its price advantages, available apps and battery life. As of now, I can comfortably recommend it as the best tablet for average consumers.

Find all of Walt Mossberg’s columns and videos at the All Things Digital website, walt.allthingsd.com. Email him at mossberg@wsj.com

]]> http://allthingsd.com/20110309/ipad-2-thin-not-picture-perfect/feed/ 0 http://allthingsd.com/20110304/so-how-much-is-my-monthly-data-plan-with-the-ipad-2/ http://allthingsd.com/20110304/so-how-much-is-my-monthly-data-plan-with-the-ipad-2/#comments Fri, 04 Mar 2011 13:00:44 +0000 Ina Fried http://mobilized.allthingsd.com/?p=4645 Although the price of the iPad 2 is the same its predecessor’s, there are now more options for those buying a model with cellular data connectivity.

Whereas the original iPad only supported AT&T, the new model comes in both AT&T and Verizon flavors, much as the iPhone does.

On the original iPad, AT&T offered two monthly options: 250MB of data for $15 or 2GB for $25. Once that prepaid data plan was used up, people could either wait until the next month or just pay again and start a new month of service.

With the new iPad, there are a couple additional options. In addition to offering the same options it did with the original iPad, AT&T is adding a second option, where users get billed at the end of the month. Users pay the same amount for the two data plans, but instead of buying a new plan if they run over their monthly allotment, users are billed at $10 per gigabyte for overages.

Finally, the iPad 2 also comes in a Verizon option. Verizon has several monthly plans ranging from $20 per month to $80 per month and anywhere from 1GB to 10GB of data. Below is a chart that tries to make all this a little easier to digest.

One important thing to remember, though, is that while the iPad 2 has the option for both Verizon and AT&T, there are two separate models, so once a buyer chooses one, they are stuck with that carrier for the life of the iPad. Also, in both cases, the data option is month-to-month with no long-term commitment.

In the coming days, I am sure we will be hearing plenty from both companies about why their iPad is a better option. If the iPhone advertising is any clue, expect AT&T to mention the speed of its 3G network and that its model will work in more overseas locations (for a hefty price), while Verizon will tout the reliability of its network. Both can make a case for offering a better price under certain scenarios, given their many different options.

Here’s the chart that breaks down the respective costs.

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