3 Reasons I'm Not Buying the New iPad

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Why to pass on the New iPadBy Robert Eberhard, The Motley Fool


I'm no Apple (AAPL) hater. I'm a huge fan of my iPod and I think iTunes is one of the greatest delivery systems for content in recent history. Still, I still don't see the appeal of a $600 piece of technology that will be replaced in two years by the same thing with even more bells and whistles.

Clearly, I'm in the minority here. With the release of the "new iPad" last weekend, folks clamored to get the latest in a long line of must-have products, with Apple selling more than 3 million devices last weekend alone.

I, however, was not among the masses and probably won't be.

The Motley Fool's Rick Aristotle Munarriz outlined three reasons why we, as collective consumers, will be buying the much-maligned new iPad. Following his lead, here are three reasons of my own that I won't be buying the new iPad.

1. I have a tablet that suits my needs

While I appreciate that the iPad in its various versions has probably outsold every other tablet ever made, I purchased a Kindle Fire as my tablet of choice. Amazon.com's (AMZN) tablet, though smaller and not nearly as technologically advanced as its larger cousin, was much more affordable, checking in around $200. Throw in a year of Amazon Prime, and the total price for a Kindle Fire is less than half the cost of an iPad.

Sure, you can replicate the benefits of a Kindle/Prime bundle on the iPad with a subscription to Netflix (NFLX) and Hulu, but the annual and upfront costs are much lower with the Kindle. Combine that with what is perhaps the best e-book experience (sorry, iBooks), and you truly have an infrastructure built around the Kindle family of devices. After the relative success of the initial Fire, I could easily see Amazon expanding its Kindle family further, perhaps even including a 10-inch model to compete directly with the iPad's screen size.

2. $600 can be turned into more money elsewhere

The current price of a new 32GB iPad is $599. And, like a new car, once you buy it, it begins to depreciate immediately. You would be hard-pressed to find a buyer for a used iPad close to that price point. However, if you instead purchased a share of Apple stock, even at its current price of around $600 a share, you have the potential to reap some return from the company's performance. (I regret having to unload the few shares I owned when it was trading at around $450 a share.)

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The past five years have shown remarkable growth in both share price and revenues, but only time will tell whether this will continue much longer into the future. Combine its runaway performance with its recent dividend announcement, and you have what may be a lucrative investment going forward.

3. I'm a Windows guy at heart

As much as I love my iPad and iTunes, I am ultimately a Windows fan. So I want to wait and see what Microsoft (MSFT) does with Windows 8 in tablet form. Though many of the current things I do on my Windows-based laptop can be replicated on an iPad, I've grown comfortable with the Microsoft Office suite of products and look forward to the day when everything is replicated across my various devices. Although I don't think it would be hard to learn how to really use an iPad, I prefer sticking with what I know for now.

To Each His Own

Even though the iPad isn't for me, I can understand why people might purchase one. I'm sure we'll see some blowout numbers when Apple reports sales totals with upcoming earnings releases. This is why if I was in the position to spend $600 right now, I would much rather buy even one share of Apple, since the future returns outweigh what would be the sunk cost of purchasing an iPad.

If you were among the first to buy a new iPad, please feel free to tell me your reasons in the comments section below.
Though the iPad dominates the market, Apple is not the only way to benefit from the booming tablet market. Our analysts have identified the "3 Hidden Winners of the iPhone, iPad, and Android Revolution," and you can find out who they are.

Motley Fool contributor Robert Eberhard owns a Kindle Fire and an iPod Touch, but he holds no position in any company mentioned. The Motley Fool owns shares of Amazon.com, Apple, and Microsoft. Motley Fool newsletter services have recommended buying shares of Netflix, Microsoft, Amazon.com, and Apple and creating a bull call spread position in Apple and Microsoft.

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Widespread Debt: This Is Only The Beginning.
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3 Reasons I'm Not Buying the New iPad

With a national debt still hovering around 120% of its GDP, Greece is still far from being out of the fiscal woods. As austerity measures bite, Greece's GDP will shrink further and its debt-to-GDP ratio will rise, putting it on course for further defaults -- er, "restructurings." Nor is Greece alone. According to official figures, debt-to-GDP ratios elsewhere are similarly high.

Photo: Gerasimos, an 83-year-old Greek man, picks through a heap of rubbish to salvage useful items as the marble gate of the Roman Agora is reflected in a mirror, in the Plaka district of Athens on Monday, March 12, 2012. Greece implemented the biggest debt writedown in history on Monday, swapping the bulk of its privately-held bonds with new ones worth less than half their original value. (AP Photo/Petros Giannakouris)

Debt-to-GDP ratio: 130%

Photo: President of Iceland Ólafur Ragnar Grímsson prior to voting in a referendum in Reykjavik, Iceland, Saturday, March 6, 2010.   Icelanders voted "no" in a nationwide referendum on approving the use of $5.3 billion of taxpayers' money to repay international debts.  The "no" vote may complicate Iceland's effort to recover from a deep recession and a banking collapse. (AP Photo/Brynjar Gauti)

Debt-to-GDP ratio: 120%

Photo: A man reads a newspaper in Milan, Italy, Monday, Jan. 30, 2012. European leaders are trying to come up with ways to boost economic growth and jobs, which are being squeezed by their own governments' steep budget cuts across the continent. The 27 EU leaders meeting in Brussels are also looking for common ground on a new treaty to toughen spending rules to dig the continent out of a crippling debt crisis. (AP Photo/Luca Bruno)

Debt-to-GDP ratio: 110%

Photo: Workers seen at the Luis Onofreâ luxury shoe factory in Oliveira de Azemeis, Portugal, Friday, Feb. 24, 2012. Debt burdens are rising fastest in European countries that have enacted the most draconian austerity programs. Portugal's unemployment rate hit a record 14 percent at the end of last year and the government imposed austerity measures to slash costs: Portugal cut pensions, reduced public servants' wages and raised taxes starting in 2010. (AP Photo/Paulo Duarte)

Debt-to-GDP ratio: 105%

Photo: People walk past a beggar on a bridge in Dublin Monday Feb. 20, 2012. Bank of Ireland, the only one of Ireland's six banks to avoid nationalization, reported it returned to net profit in 2011 thanks to heavy debt restructuring in the face of continued losses from dud loans. (AP Photo/Shawn Pogatchnik)

Debt-to-GDP ratio: 102%

Photo: The shadow of Republican presidential candidate, former Massachusetts Gov. Mitt Romney, is seen on a representation of the National Debt Clock as he spoke at a town hall meeting in Kalamazoo, Mich., Friday, Feb. 24, 2012. (AP Photo/Gerald Herbert)

Debt-to-GDP ratio: 85% each

Photo: Reflected in a window, people walk in London's City financial district, Tuesday, Feb. 14, 2012. Britain's AAA credit rating was put on a "negative outlook" by ratings agency Moody's, amid fears over weaker growth prospects and potential shocks from the eurozone crisis. Britain's Chancellor George Osborne said the assessment was a vindication of the Government's tough austerity measures and "a reality check for anyone who thinks Britain can duck confronting its debts". Moody's downgraded the ratings of six countries and also put France and Austria on the same caution as the UK amid violent protests in Greece. (AP Photo/Lefteris Pitarakis)

Debt-to-GDP ratio: 82%

It makes you wonder: Who will be next in line to default? And when they do, will we call that "good news," too?

Photo: A pedestrian looks at a sign in a shop reading: ''One euro, price haircut'' in Athens on Thursday, March 8, 2012. (AP Photo/Thanassis Stavrakis)

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