Apple Inc is betting a 4G-equipped iPad will tempt more US consumers to pay extra to watch high-quality video on the go, and in turn, give Verizon Wireless and AT&T Inc a revenue boost.
Until now, Apple's fan legion has been reluctant to shell out extra money even for iPads with 3G connections. The cheaper Wi-Fi-only model -- with more limited Web access -- is by far the top-selling one today.
The newest iPad will be capable of operating on a high-speed 4G "LTE," or Long-Term Evolution network, according to a source familiar with the product. At speeds roughly 10 times faster than current 3G technology, that may go a long way toward banishing the sometimes shaky video quality of older devices.
Such a juiced-up device would help boost the telecoms market if consumers catch on and can be enticed to pay more, some analysts said. The global tablet user base already reached 67 million in 2011, according to researcher Strategy Analytics.
"It's going to dramatically improve video consumption," said UBS analyst John Hodulik. "This is the device people want. They want the fastest speed. They want high resolution."
Apple, AT&T and Verizon declined to comment.
The Cupertino, California-based consumer device company is gearing up to unveil the iPad 3 on Wednesday, a faster and better-equipped version intended to thwart increasing competition from rivals such as Samsung Electronics Co and Amazon.com.
The new iPad will be "critical" to Apple if it is to continue to dominate the global tablet market, said Frost & Sullivan's analyst, Phil Harpur.
"A lot will depend how receptive the market is to the new features offered by iPad 3, two of which are believed to be quad-core processing and 4G-LTE capabilities," he said. "While iPad 2 offered only minor incremental upgrades, this time the market will be expecting a lot more."
The unveiling at the Yerba Buena Center for the Arts in San Francisco, where the company also introduced the last two iPad generations, will be Chief Executive Tim Cook's second major product launch, after the iPhone 4S unveiling last year at the company's headquarters.
The smartphone was initially a disappointment as it was perceived to be mostly a software upgrade, but "Siri," its voice-enabled personal assistant technology, helped to make it a bestseller.
Cook will again be flanked by Apple's top cadres on Wednesday, when he kicks off a typically tightly choreographed show scrutinized by investors and industry insiders. On hand will likely be Apple's top marketing executive Phil Schiller, its head of Internet services Eddy Cue and software chief Scott Forstall -- the standard cast for major launches following the death of founder and consummate showman Steve Jobs last year.
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