I tried your suggestion and other things in Project Properties but didn't have any luck. Still looking for the answer. Here's some more info if anybody has any ideas:
The alpha problem doesn't happen if I do a remote preview from a pc and open the link on my iPad.
The alpha problem does happen in Safari and Chrome on the iPad if the project is previewed from Construct running from either of those browsers, preview or remote preview.
Here's what the problem looks like when the game is running on iPad:
Here's what the image looks like in Photoshop:
Here's what the image looks like in the Construct editor:
Any ideas? Thanks.