Samsung expects Galaxy Tab to get heavy US subsidy

Samsung in an update [sub. required] on the Galaxy Tab said the tablet's price would be below Apple's iPad when attached to a carrier. Although the full price may be significantly more expensive than the iPad -- $900 or more -- executive Hankil Yoon told the WSJ that the price would be no higher than $300 but likely above $200. Discussions are underway with US carriers, but Yoon wouldn't say which and expected the price to vary.

Previously, Germany was slated to be first with the Galaxy Tab with a launch in the middle of this month. Italy is part of the next wave, and many of Vodafone's European branches will have the Android hardware in October. Leaks have had a Verizon model coming, and one as yet unconfirmed rumor has a Sprint model with 4G coming in November.

The emphasis on carrier discounts is likely to be a calculated but risky strategy for Samsung. While it would superficially lower the cost of the Galaxy Tab to half that of a 3G iPad, which costs $629, the discount would likely require a contract locking users into two years of data whether they need it or not. On Verizon, a plan with a small 250MB per month would cost $40 per month, or $960 over two years. iPad owners pay more initially but only have to use service for a month at a time and can pay as little as $15.

Samsung is counting primarily on the more portable form factor, as well as front and back cameras, to sell shoppers on its tablet. Apple's feature set is more stripped down, but launched months earlier and is better for video and the web with a larger screen.

By Electronista Staff