Article about subsidized tablet prices

[Pliablemoose]

The New 3G Tablet Pricing Menu
Subsidized Tablet with Affordable Data: There’s no way that a Samsung Galaxy Tab shopper is going to pay $59 per month for data, especially for something that’s not a full PC. Something like $40 per month sounds more reasonable for those willing to sign a two-year contract. That may still sound steep, but some may find tablets so versatile that they ditch their smart phone in favor of a cheap voice-only phone.
Tablet Price: $299 ($100 more than a smart phone seems reasonable), plus $40 per month for data.
Two-Year Total: $1,259
Shared Data Plans with Smart Phones: For those who prefer to pay less up front, carriers should offer an option to buy a smart phone with a data plan and then share that bucket of bytes with a tablet—provided you sign up for a two-year contract. In this case you would have to pay more for the device than you would if went the traditional subsidized route, plus $5 more per month for data than you normally would (kind of like a service charge for an extra cable box/DVR in the home).
Tablet Price: $399, plus $35 per month for data
Two-Year Total: $1,239
Mobile Hotspot Bundles: Now that you can buy smart phones with built-in mobile hotspot apps, you could easily share that data with a tablet. Sprint charges $30 per month for this feature for unlimited data (which includes 4G), while Verizon Wireless’ plan is $20 for 2GB. AT&T and T-Mobile do not yet offer phones with this capability. (Tethering via USB is sometimes an option, but it’s inconvenient.) I think carriers should sell these smart phones and tablets as a bundle. You would get the slate at a discount but would still need to pay the separate hotspot data fee. Another option could be pairing a dedicated mobile hotspot device like the MiFi or Sprint Overdrive with a tablet, though the higher cost of data ($59 per month) would mean carriers would charge less for the device bundle.
Hotspot Phone + Tablet: $499, plus $30 for data
Two-Year Total: $1,219
Mobile Hotspot Device + Tablet: $349, plus $35 for data
Two-Year Total: $1,189
No-Contract Pricing, Including Session-Priced Data: One of the options should mirror AT&T’s, where the customer can pay more for the device but less for data per month—no contract required. This is something that T-Mobile already does with its phones. AT&T’s going rate of $25 per month for 2GB seems fair. And you shouldn’t be limited to signing up for a whole 30 days at a time. Session-based pricing could cost anywhere from $3 to $5 per day.
Price of Tablet: $599, plus $25 per month for data
Two-Year Total: $1,199

http://blog.laptopmag.com/listen-up-carriers-3g-tablets-need-a-new-pricing-menu

I think he's pretty close to what the prices will be. they have to be in that range for 3G tablets to sell at all.

 

[Bateluer]

Even 40 a month seems awfully steep, even if its unlimited, to me. I'll get a WiFi only version, if I require a tablet at all.

 

[dguy6789]

Yep, only interested in Wifi tablets for the forseeable future. I can not and do not take my iPad with me everywhere I go. I can and do take my smartphone with me everywhere I go. Makes no sense from what I can see to want a 3G tablet and a non 3G phone. Can always tether if I'm somewhere with the tablet without Wifi. I also predict poor sales for any tablet that is over $499.

 

[preslove]

Extending the smart phone contract pricing model to tablets is just plain stupid. If samsung actually tries to sell the tab for $500+ off-contract/wifi-only, it is going to crash and burn.

 

[Pliablemoose]

I wouldn't pay that much, I have a backwards mobile connection, got the unlimited (no longer available) data on my iPad, and went with a measly 5mb prepaid plan for a Droid Incredible.

Am around WiFi all the time, but need GPS, so added TomTom to the iPad

Looks crazy, but it works pretty well.

 

[Bateluer]

I also predict poor sales for any tablet that is over $499.

With the exception of the iPad, anyway.

 

[dguy6789]

With the exception of the iPad, anyway.

Without knowing the actual numbers, I would imagine no less than 90% of all iPads sold are the $499 model.

 

[kaerflog]

Well, I looked into all the cheapest data plans available for netbooks right now.
- ATT- $40
- Verizon- $35
- T-mobile- $25
- Sprint- Only 1 price at $60

So when the tablet comes, I think they will offer it along the same line as they offer the 3g netbooks. Maybe except for Sprint(lower tier data plan) if they want to attract buyers.
I'm excited to see how T-mobile price the Galaxy tablet.
Them and Sprint have the cheapest ETF fees so its worth to buy and then pay the ETF.

 

[preslove]

Well, I looked into all the cheapest data plans available for netbooks right now.
- ATT- $40
- Verizon- $35
- T-mobile- $25
- Sprint- Only 1 price at $60

So when the tablet comes, I think they will offer it along the same line as they offer the 3g netbooks. Maybe except for Sprint(lower tier data plan) if they want to attract buyers.
I'm excited to see how T-mobile price the Galaxy tablet.
Them and Sprint have the cheapest ETF fees so its worth to buy and then pay the ETF.

The iPad is $30 a month, though, and it doesn't require a contract.

 

[Pliablemoose]

The iPad is $30 a month, though, and it doesn't require a contract.

Unsubsidized.

It will be interesting how the pricing plays out with the Galaxy Tabs, it would be cool as hell if they decided to explode the tablet market with great prices, but I fear that won't be the case.

TMobile's $25/month is only 250 mb/month for the subsidized netbook (the netbook is $149). $40/month for the 5GB plan.

I suspect we'll see the data plans at $40, given the way carriers seem intent on screwing everyone.

 

[zerocool84]

Unsubsidized.

It will be interesting how the pricing plays out with the Galaxy Tabs, it would be cool as hell if they decided to explode the tablet market with great prices, but I fear that won't be the case.

TMobile's $25/month is only 250 mb/month for the subsidized netbook (the netbook is $149). $40/month for the 5GB plan.

I suspect we'll see the data plans at $40, given the way carriers seem intent on screwing everyone.

Verizon needs to implement tiered data rates like AT&T does but not kill the 5GB.

 

[Bateluer]

Verizon needs to implement tiered data rates like AT&T does but not kill the 5GB.

Its better that they don't. Tiered data plans vastly inflate the price for most people, and kill revenue for a lot of developers. When you have a 'hard' cap of 2GB, or lower, you become much more conscious of how much data you're using. Therefore, you go down to the bare essentials, things you need only. Extra things like movie trailers, YouTube, MP3 stores, etc, things that use a lot of data, get severely restricted or stopped entirely.

Its far better for the consumer that the carriers be restricted to the status of dumb pipes rather than content providers. Much, much better.

 

[ew915]

How about you tether from your smartphone to your tablet for FREE?

 

[preslove]

Unsubsidized.

It will be interesting how the pricing plays out with the Galaxy Tabs, it would be cool as hell if they decided to explode the tablet market with great prices, but I fear that won't be the case.

TMobile's $25/month is only 250 mb/month for the subsidized netbook (the netbook is $149). $40/month for the 5GB plan.

I suspect we'll see the data plans at $40, given the way carriers seem intent on screwing everyone.

I don't think subsidies will have as much of a draw with tablets as smartphones. People don't really see the drawbacks of smartphone subsidies because they're already ok with paying a cell phone bill. They're just paying a bit more on the same bill with the smartphone. With tablets, you're trying to convince customers to pay a bill they wouldn't normally pay. Forcing them into a 2 year contract is even worse.

Apple got it right with their pricing (even if the premiums on more flash memory and 3g are kind of ridiculous). Have a wifi only device for $500 and then give the option for 3g, and allow the consumer to cancel their data service at any time. That way, you can sell the cheap, no strings attached device at the entry level, as well as collect on the 3g premium without scaring customers with a 24 month contract. Samsung should have copied this set up to a t.

 

[MrX8503]

Great, more ways a carrier can screw you over. What needs to happen is that they need to drop this contract BS.

 

[TheStu]

How about you tether from your smartphone to your tablet for FREE?

If you don't have unlimited data, then you are using the second model, namely, sharing. Now you have an xGB pool for 2 devices instead of just one.

 

[JeffreyLebowski]

If you don't have unlimited data, then you are using the second model, namely, sharing. Now you have an xGB pool for 2 devices instead of just one.

That's why you pick up a Galaxy S, get the familytalk/data plan from T-mo and get unlimited data on your Vibrant, root it and install the wireless tether app, and tether the tablet to the phone.

though I think the tablet phase is just a way for people to try and say hey look at me, I have expensive tech to play with, as a tablet is more noticable than a phone.

 

[ew915]

If you don't have unlimited data, then you are using the second model, namely, sharing. Now you have an xGB pool for 2 devices instead of just one.

I have unlimited data, all carriers offer unlimited data plans except AT&T.

Now it could be an issue if you go crazy and start downloading usenet with your wireless. However you don't use 2x just because you are using 2 devices, there is still 1 user, the tablet might get more use but you shouldn't go over your 5Gb softcap just because you switched from your phone to a tablet.

I say tether is the best option and just buy a unsubsidized tablet, otherwise you'll get more bloatware and more junk to remove.

 

[TheStu]

I have unlimited data, all carriers offer unlimited data plans except AT&T.

Now it could be an issue if you go crazy and start downloading usenet with your wireless. However you don't use 2x just because you are using 2 devices, there is still 1 user, the tablet might get more use but you shouldn't go over your 5Gb softcap just because you switched from your phone to a tablet.

I say tether is the best option and just buy a unsubsidized tablet, otherwise you'll get more bloatware and more junk to remove.

I don't expect that the unlimited data plan model is going to be around for much longer.

And even using the 5GB point that you described, yes you are only using it on one device at a time, but you might start doing more data intensive things if you have a larger, more powerful device. Streaming netflix over 3G to the larger screened tablet for example.

All i am saying is that I can imagine a tablet using more 3G data than a phone. So, if you are tethering, then you are using more data than usual and maybe, just maybe, will exceed or butt up against your limit.