Analysts Debate Galaxy Tab Price on Verizon

By Clint Boulton  |  Posted 2010-10-21 Print this article Print


This is especially true considering Verizon said it will start selling the iPad Oct. 28 for $629 with its mobile WiFi technology.

"At $599, Verizon must be thinking that the Tab is $30 less than the equivalent iPad/MiFi bundle at $629, but ... to be competitive on price, the Tab needs to be significantly less expensive," Greengart said.

Greengart added that the Tab is also suffering by comparison to Apple's least expensive and volume leader iPad, the WiFi-only version, which costs $499. There will be a WiFi-only Tab, but pricing and distribution for that has not been announced.

"Traditionally higher cost means either weak supply capability or high demand, so perhaps the price is high to limit the overall sales to a level they can support," Gold said.

"I'd be surprised if that is the case here though. I'd guess Verizon is just being overly cautious with the new product and new product category. ... We will have to wait and see how well it does, and what Verizon does to compensate if it doesn't do as well as expected."
Forrester Research analyst Sarah Rotman Epps isn't so surprised by Verizon's aggressive pricing.

Epps found that consumers who say they intend to buy a tablet say they expect to pay, on average, $530. In her view, Samsung's tablet at $600 with no contract subsidy is not outside the ballpark of what consumers are willing to pay for these devices.

"In the longer term, tablets will be susceptible to price wars just like every other commodity. Right now, though, consumers that are buying tablets care more about the experience of the device and the content they can access," Epps added.

That's another area where the iPad has Android-based tablets beat by a long shot. Apple's App Store sports 300,000 applications, 25,000 of which were designed for the iPad. 



Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel