Sunday, October 10, 2010

Rumors Regarding Samsung Galaxy Tab's Pricing

TmoNews is reporting that they received a screenshot of an ad that shows that the Galaxy Tab will cost $399 with a 2 year contract.  We have been hearing many things about the Galaxy Tab except for pricing and release date.  Now, it appears that the pricing will be $399 after $50 MIR & 2 year contract or $650 without a contract.  This appears to fall within range of an earlier rumor that Sprint will offer the tablet for $399 with a 2 year contract and $599 without.  On the Sprint rumor, the Galaxy Tab is to be released on November 14th.  Of course, this is just a rumor.

Since pricing will not probably not vary by wireless carrier, we believe the $399 will be the standard.  Consumers will be buying the Galaxy Tab based on the data plan and preferred carrier.  Unfortunately, this pricing is higher than what Samsung Executive Hankil Yoon mentioned back in September that this would cost between "$200 and $300."  We are disappointed that the tablet will be $399 with a 2 year contract.  Tablets will become obsolete very quickly.  Those that are released first will become obsolete quicker.  Unless the Galaxy Tab is upgradeable to Android 3.0, it will become obsolete once 3.0 is released. 

Anyhow, we do not believe in forcing customers to lock in on a 2 year contract.  Who has money to spend $400 every 2 years?  Even spending $200 on a cell phone every 2 years is a lot.  How customers accept this will determine its success.  $599 without a contract is the highest pricing point that we would consider a tablet.  Until the performance is known, we do not know if $599 is a worth it.

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