Verizon raised a few eyebrows this week when it announced it would sell Samsung's Galaxy Tab for $600 on November 11, 2010. Days earlier, Verizon said it would start selling Apple's iPad (Wi-Fi) version for $630 bundled with Verizon's MiFi Mobile Hotspot device. Math majors can check our numbers, but that's just a $30 price difference. Is it enough?
"Competitors coming into the market have to offer something better, different, or cheaper," said Avi Greengart, an analyst with Current Analysis.
Point blank, Greengart says Verizon's pricing of the Galaxy Tab is simply too high and should have been tagged at under $400. Even with the Tab's advantages over the iPad -- integrated camera, USB, Flash support -- Apple's strong brand name is just too much to contend with at similar price points, especially considering the larger selection of apps.
"Tab feels solid in your hand but without the App Store behind it and with a smaller screen they can't charge the same amount as the iPad," Greengart said.
Do you agree that the Galaxy Tab is overpriced?
Comments are closed on this article
bart3385
October 22, 2010 at 8:21am
Definitely overpriced.
There's lots of sub-$100 android 7" tablets coming out from smaller companies, and selling like hotcakes.
Samsung, being a well-known brand, can take the price up 2x for the brand name, or even 3x up for the quality. But not 6x-7x level. That's too much.
cpuking2010
October 21, 2010 at 10:27pm
would be in my car it would be used as a screen for movies and such, plus would be perfect for navi. now most screens in cars are 7" but for $30 more this apple hating steve jobs despising guy would get the itampon... however both are way overpriced i'm not going to pay more for a tablet then a smartphone and i sure as hell am not gonna get a 2 year contract to go with it! To those who say this will repace my laptop ur nucking futs! its just a GIANT smartphone that can't make calls!
riopato
October 21, 2010 at 5:43pm
Part of the reason Microsoft's Kin failed is because Verizon decided to treat the feature phone as if it's a smartphone with smartphone data plans. They couldn't subsidize it any cheaper in order to promote that device? Same goes for iPad and Tab. Is Verizon not able to subsidize these devices at all? The wifi iPad starts at $500 so what is Verizon offering for $130 extra? The Tab actually costs how much?
For a carrier who doesn't know that the global phone market uses GSM technology, it sure know how to exploit it's customers! What a rip off!
TechW
October 21, 2010 at 11:24am
I have to agree. At $399 it's a buy, at $600 it's a wait and see what else comes out. Still not getting an iPad though.
legacy2013
October 21, 2010 at 10:46am
Yea I was going to buy this until I saw the price, no way they should be charging this much and there isnt a WiFi only version!?!?! come on samsung your smarter than that you had so much hype before this, if you want to compete with the iPad lower the price...
aviaggio
October 21, 2010 at 1:21pm
Well to be fair it's Google that's forcing them to not offer a WiFi-only model, as they require a cell radio in order to allow access to the marketplace. This is supposedly going to be changed with later releases of Android. But it still sucks in the meantime.
But on the flip side there is no good reason why a $30 cell radio should jack up the price by $200.
Eoraptor
October 21, 2010 at 10:23am
Teah, this price point is a bit extreme even in a first generation example. Apple already did a lot of the engineering for this form factor, so really anything that comes after should come in at the same price or lower, especially consdiering the price premium the big fruit puts on all its products. Samsung had a LOT of good early buzz on this product, but they've decided to squander it all it seems.
violian
October 21, 2010 at 10:21am
I wanted to gag myself when they said it's only $30 cheaper than the iPad. The Galaxy's screen appears to be half the size of the iPad's. Is the USB only for syncing? Cuz the iPad has a dock connector for syncing. The camera doesn't win me over - who's going to carry around a tablet using it as a digital camera? I'm going to still have to carry around my cell phone anyways, so I might as well use the camera on my cell phone - it's much easier to take pictures with a cellphone too.
And I totally agree with the analyst's remark that the Apple brand and its environment is way too much to contend with for a price difference so marginal.
Eoraptor
October 21, 2010 at 10:28am
Well, to be fair, we haven't seen all the concievable uses of a tablet form-factor yet. and most of the people I talk to who want a tab for business want it to be a clip board with a bar-code scanner, and look at all the phones that can already read Q-codes with their cameras. Try reading a shipping manifest on one of those? But yes, if you're going up against a goliath like Apple, the answer isn't to shoot your budget on a gold plated slingshot. Either spend it on an Aero mini gun, or do it much cheaper with ye olde goat skin.
mortalrage
October 21, 2010 at 10:17am
I'll wait till the competition among the carriers. I expected the price to start out high. The demand I believe will lower the price over time.
aviaggio
October 21, 2010 at 9:43am
Everyone pretty much knows how much I despise Apple, but even I would buy an iPad before the Galaxy Tab at that price. I'm really baffled as to how Samsung thinks this thing is going to sell at that price point.
Mister Friendly
October 21, 2010 at 9:33am
The Ipad is a terrible device that causes cancer and aids in nuns and children whereas Android tablets cure cancer and aids in nuns and children. Is that worth an extra couple hundred dollars? I'd say. Apple is going down. downtown down. Apple will be gone by Christmas while Google will replace food and education with Android branded phones and tablets.
RedAnt751
October 21, 2010 at 10:07am
In One Word YES.
Sorry I was considering it but at that price point there is no way I would buy one.
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