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iPad Returns: Why 50 Buyers Returned their iPads

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We're counting down the Top 5 posts published to Voice of Vovici in 2010. I assumed this was the most popular post of the year, but it comes in at #2. This post was originally published April 25.

It was a tough decision, but I returned my iPad two weeks after purchasing it. (You can return it 14 days after purchase for a refund, minus the restocking fee.) Since I was curious as to whether I was alone in my reasons for returning it, I decided to do some research.

Now, if I were doing this project for a competitor of Apple's, I'd spend tens of thousands of dollars conducting a survey with a probability sample of U.S. consumers, so that I could extrapolate to iPad users precisely how common certain reasons for returns were. To do that well, I'd first use social media to develop a comprehensive list of reasons iPads are being returned.

And so that particular step is what I did. I used Twitter search to find 260 tweets on "iPad (return OR returned)". From these, I identified 50 Twitter users who had tweeted about either returning or considering returning their iPad.

[Graphic inspired by and adapted from Information is Beautiful's infographic, More Truth About Twitter.]

Sometimes the tweet alone was not enough to determine the motivations for the return; searching on their username and "iPad" often revealed the reasons, as did using the Conversation function within Twitter search. Other times they linked to blog posts that provided detailed reasons for their return. I also reached out to two users who didn't specify reasons, then decided reaching out to more would make me look like a Twitter spammer. Of the 50 individuals, 40 already returned their iPads, and 10 are considering returning the device. Of the total, 42 people gave one or more specific reasons for returning or wanting to return the device.

After reviewing these tweets and blog posts, here is the list I came up with for why buyers returned or are considering returning their iPad:

• To buy another Apple product
  • In order to purchase an iPad with more memory
  • In order to purchase a 3G iPad
  • In order to purchase a MacBook Pro
• Poor value
  • Too expensive
  • Doesn't do enough
  • Expect the next-generation will be better
• Incompatibilities
  • Browser incompatibilities
  • Application incompatibilities
  • Lack of VGA
• Screen problems
  • High glare
  • Requires cleaning too frequently
• Miscellaneous
  • No multitasking support
  • Applications limited when offline

(For this particular study, I'm not providing actual quotes from the users researched, because the market research industry is still debating social media research ethics and whether or not it is acceptable to quote from social media materials publicly in studies, even if such materials are publicly available.)

Half of the returns are to upgrade to a 3G device from the current WiFi-only edition. A quarter of the returns or considered returns are from people who regard the iPad as a poor value, for which they cite a mix of reasons (expense, limited capabilities, that the current generation is a "toy"). A sixth of the returns are because of incompatibilities.

Again, because of the nature of this research you can't extrapolate this to the population of iPad returns, but it is indicative. Overall, I would say that it is good news for Apple. Those who return the WiFi iPad in order to upgrade to the 3G will bring in more revenue for Apple for the device itself and presumably a share of recurring revenue for the data plan. A few have already spent more with Apple (one upgraded to 64GB and two individuals traded up to MacBook Pros). The primary complaints are solvable in the long term: value will improve as Apple gradually lowers the entry price and as more iPad-specific applications are available; incompatibilities will be resolved as the installed base swells and as Apple and its publishers update their apps.

Why did I return my own iPad? I had assumed WiFi would be sufficient, since I'm usually at home, the office, the airport, the hotel or a conference, where WiFi is available. And I needed another $30 per month charge like I needed a hole in my wallet. But I realized that I could easily cost-justify the 3G thanks to the ridiculously high prices hotels charge for WiFi access ($15-20/day) and then I went to my third conference in a row without WiFi. Plus the applications work poorly offline (no browser caching, limited email caching). So it will be a 3G iPad for me.

For additional social media research on the iPad, check out the Attensity blog post, Apple Finally Ships the iPad - So How Do People Feel?