I can't send a text to people who don't have an iPhone or an iPad. Just got this iPad mini yesterday. I also have an iPhone 5 and have no problems with that.
yeah ipads can't send sms's at all
imessage is an app which works as an instant message app for chatting when on wifi and both ends have imssage
on phones when one is not online or don't have imessage it will be sendt as a sms
only on iphones though
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