1. The iPad Effect Resolve Market Research ™ Please note that all data are based on a nationally representative sample. © 2010 Resolve MR. All rights reserved | CONTACT: 323-871-4404.

2. Key Findings iPad users interact with their iPad most from home—in particular the couch (68%) and the bed (40%). The fun/toy perception affected the iPad in divergent ways: – 55% saw it as an expensive toy – Of those who owned/intended to own the iPad: 56% wanted to use it for “entertainment” – Of those who didn’t want the iPad: 54% said they didn’t see the need The iPad will have an effect on e-Reader sales but not music player sales: 71% of owners/intenders want to read books on it compared to a little above one-third who want to listen to music or podcasts. Portable Gaming Devices are at a cross-roads: – Currently, 28% of people want to use their iPad for playing games – In addition, 60% think PGDs are best for playing games – However, the top 2 devices people will not buy after purchasing an iPad is an e-Reader (49%) and a Portable Gaming Device( 38%) The iPad has the potential to be a strong gateway product to AT&T. – For 37% of iPad intenders, this will be their first Apple product – Of iPad intenders, 44% currently subscribe with Verizon

3. Methodology The study was conducted by Resolve Market Research. The study was executed via an online survey from June 5th 2010 to June 10th 2010 among a US nationally representative sample of N=406 mobile/portable technology owners and intenders. Figures for gender, age and devices were weighted to their proportion in the US population using an omnibus sample of N=1000. The study compared technology owners and intenders across four sub groups: The iPad group (n=205) those who own or intend to own an iPad. The portable gaming device group (n=194) those who own or intend to own any of the following devices: PSP (2000, 3000, GO) or Nintendo DS (DS Lite, DSi, DSi xl), the smartphone group (n=325) those who own or intend to own any of the following: iPhone (any model), BlackBerry (any model), Droid Smartphone (any model), or “Any other smartphone”, and the e-Reader group (n=137) those who own or intend to own any of the following: Kindle, Nook, or Sony E-reader. The margin of error for the full sample is +/- 4%, higher for subgroups.

4. The Digital Playground: iPad is simply seen as cool and impressive gadget. QO1A : Please identify the top three reasons for why you wanted or would like this device - iPad QA2 : Which of the following statements do you agree with regarding the iPad? Top Interest Drivers: 55% of owners/intenders see the iPad as a very expensive toy Convenience 40% Entertainment 56% Cool Factor: 42% Top iPad Association:

5. QU1B : Where in the home do you primarily use your iPad? Location, Location, Location: Apple's "casual and comfortable" usage advertising seems to be hitting consumers right on target. On the Couch 68% In the Bed 40% On the Porch/Deck 31%

6. The Digital Playground: The influence of the toy perception. I have another device that covers the same functionality: 16% Subscription fee for 3G: 17% It’s too expensive: 46% I don’t see the need for it: 54% QA2 : Which of the following statements do you agree with regarding the iPad? QO1A : Please identify the top three reasons for why you wanted or would like this device. QO3 : You did not select an iPad as a device you own or intend to own. Why do you not want an iPad? Top Reasons for Rejecting the iPad Brand: 28% Convenience: 40% Cool Factor: 42% Entertainment: 56% Top Reasons for Intending the iPad It will replace the need for netbooks: 25% It is a useful tool for productivity: 28% It is a technological breakthrough: 33% It is a very expensive toy: 55% Top consumer iPad Perceptions

7. Preferred iPad Functionality Prior to Purchase: Everything but playing games & music. QU31 : On which device would you prefer to perform each of the following functions?

8. The iPad Effect On Other Devices: Portable Gaming Device 60% iPad 23% Smartphone 8% QG2A : Which of the following devices do you think is the most enjoyable for playing games? Rank 1 QA3A : Which of the following devices would you not buy after owning an iPad? Which of the following devices do you think is the most enjoyable for playing games? Which of the following devices would you not buy after owning an iPad?

9. QU6 : Which of the following products have you owned or currently own? Over one-third of consumers planning to purchase an iPad state that this will be their first Apple product. iPod: 49% iPhone: 24% MacBook: 16% Previously or Currently Owned Apple products: The iPad is the Next Gateway Device: It has the potential to have the same halo effect of the iPod.

10. QD5 : With which cell phone carrier do subscribe? Carrier Migration: The iPad has the potential to lead Verizon customers toward AT&T.