Samsung Galaxy Tab Priced at Amazon Germany, U.S. Pricing Up to Carriers
The Samsung Galaxy Tab, a new 7-inch Android tablet, was announced last week and there were many rumors that the price would be upwards of
$800. Now there is the first proof that the pricing rumor may be true since it has been priced at $799 Euros (a little over $1,000 USD) on the German Amazon web site. Some feel that is going to be just too expensive to compete with the Apple iPad.
While the rumor on the pricing seems to be confirmed in Europe, there is another report that in the United States the same product will have a much cheaper, initial cost. Engadget linked to a Wall Street Journal article that said the Tab will not sell directly to consumers in the US. Instead the company will only sell to wireless carriers who will in turn market it to their customers as part of a wireless contract with a subsidized price of $200-$300, or slightly more than the Galaxy S mobile phone.
But will that make it “cheaper” or just defer the total cost to consumers through their wireless contract? At Sprint the cheapest current monthly data plan is $60. Verizon has the same rate. Over a two-year period, which is the standard contract length in order to get the best price on nearly all wireless hardware, would cost $1,440 plus the initial cost of $200-$300. Even at best case scenario of $200 for the Galaxy Tab, that is a whopping total cost of $1,660.
The 3G iPad costs more up front if the Tab's rumored US pricing is true
If the Galaxy Tab came to AT&T, which is the carrier for the 3G version of the iPad, then the two-year cost using the $30 per month price, and assuming a $200 device cost, would be $920.
The initial cost is much better for a Galaxy Tab with 3G capability when compared to the iPad with 3G. The cheapest 3G iPad is $629 plus the $720 for the two years of wireless service for a total of $1,349; but iPad owners aren’t locked into a contract. However, that is only if the Tab is on the same much maligned AT&T 3G network. If it is on one of the other two major wireless services, then it will cost about the same as the iPad over two years.
Some will argue that customers would be paying the data plan price anyway. But would they? Many enjoy their Wi-fi iPad’s without a wireless plan at all.
Whether it ends up on AT&T, Sprint or Verizon it looks like the up front cost for the Galaxy Tab will be much less than overseas, but it will come with an expensive contract. Buyers who don’t do the math may be caught up in believing that the costs of the Tab is far cheaper than the iPad, which could result in a hit for Samsung and whichever wireless carriers they partner with.
Category: News
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
The Tab will be my phone… no no net cost increase to me… plus a subsidized cost.
These nos. are ridiculous. When the costs of phones are discussed, nobody includes the two years of monthly service…
I think one of the later Samsung tabs will be relased with wifi only… and that the cost will be lower… this is a first relase of a really cool product…
The endless hand wringing over “will it cost too much” when Samsung has clearly said it will cost between $200-300… same cost as a smartphone… it will be a very good deal.
For years I've wanted something between my 10″ netbook size and my 4″ smartphone size…. this tablet will be the perfect size.
For many people who are on the cutting edge of technology (and those who even know abou the Galaxy Tab)…. money is not a problem and we are willing to buy it because of how much it will improve our lives.
Stop trying to shoot the thing down before it's even released….
Are you really going to carry this around instead of your phone… No denying it is a decent piece of hardware, but unless you have really big pockets it might not be as convenient as you think. Even Samsung has admitted that it is better suited as a speakerphone that a handheld.
Then again it might make for an good excuse to say the line “Excuse me while I whip this out…”
WoW…there is definitely a market for this tab. The specs are good, it actually is better than the ipad. Great price as well.