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Verizon cuts Galaxy Tab to $500 to fend off iPad, Droid Xoom

updated 11:50 pm EST, Sat January 1, 2011

Verizon Samsung Galaxy Tab drops to 500

Verizon was discovered tonight to be cutting the price of the Galaxy Tab to $500 contract-free. The steep, $100 drop should take effect soon and will also include $60 of movie rentals from Blockbuster's app or Samsung's Media Hub. Anyone who bought the Android tablet within the past two weeks can get a refund for the price difference, Droid-Life retail sources said.

The price drop comes just two months after the November release and implies serious concerns about the Galaxy Tab's sales prospects at Verizon. No information has surfaced to show whether the seven-inch slate has been selling well or poorly, but reductions of the sort aren't common so soon into a device's lifespan.

Most of the pressure may come from other Android tablets. Motorola's Droid Xoom will be launched at CES next week and could render the Galaxy Tab obsolete at its current price with a much faster NVIDIA Tegra 2 processor, a larger screen and Honeycomb instead of the already outdated Android 2.2. Samsung may also have a new 10-inch Galaxy Tab also using the Tegra 2.

The Galaxy Tab might similarly face pressure from the iPad. While the current iPad is near its end of life and could be replaced by a much upgraded model by early spring, its $629 price is only slightly higher than Verizon's original Galaxy Tab but has a larger screen and bundles in a MiFi that lets users share a connection across multiple users without having to spend extra on the hotspot plan Samsung's tablet requires.



By Electronista Staff
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Comments

  1. Jonathan-Tanya

    Fresh-Faced Recruit

    Joined: Oct 2004

    -4

    $100 is a steep price drop; however $300 is more r

    I'm not sure why the need to declare a $100 price drop as 'steep.' but so be it.

    To me, it's not near steep enough. This tablet is in the same league as the B&N Color Nook, or the Archos 70, tablets which cost about $250 & $350.

    So the Galaxy Tab at $500 is way too expensive, and doesn't tempt me to purchase in the least bit.

    I would be interested in it, at $350, but only for a few more weeks, until the much better tablets come out from other companies.



  1. SockRolid

    Forum Regular

    Joined: Jan 2010

    -1

    May have collector value in 50 years

    All these wannabe iPad clones just might be the Ford Edsels of the mid-21st century. Note for non car-geeks: the Ford Edsel was a mid-priced car line designed with much user feedback from consumer focus groups. It sold very poorly, and production lasted only from 1958 to 1960. Ford lost millions on the design, development, marketing, and manufacture of the various Edsel models.

    Some of the rarest Edsel models are worth 10 times their purchase price now. Of course, it took 50 years for that to happen.

  1. Relwal

    Fresh-Faced Recruit

    Joined: Jan 2011

    0

    Last 'graph is wrong

    Verizon does not charge extra to use the Galaxy Tab as a hot spot. Of course, regular data charges apply.

  1. Relwal

    Fresh-Faced Recruit

    Joined: Jan 2011

    0

    Galaxy Tab is very good.

    The Galaxy Tab is quite a good tablet.

    The nook color is similar in size, weight and display, but it lacks the full Android Market. The Archos 7 is not really competitive with either the nook nor the Tab.

    At $500 the Galaxy Tab should find more customers. The average iPad sells for $645. I have both an iPad and a Galaxy Tab, and I find the Tab is the one I reach for if I need to get something done or when I'm on the go.

  1. chippie

    Fresh-Faced Recruit

    Joined: May 2009

    -2

    Samsung is a smart competitor!!!!

    Samsung got a non honeycomb tablet to market( Gutsy). Samsung has sold( not shipped) at least 1,5 million galaxy tabs. And probably shipped 2 million( which for Samsung are sales) in one quarter. Samsung's Galaxy Tab were sold with 3G contracts. Which I agree probably held sales down but spectacularly shows that a viable number of people want to always be able to get online with their tablets.
    Now, the smart thing to do is get rid of all the 1Ghz models( by reducing price) and introduce the improved Galaxy Tab with tegra2 and honeycomb ready. And wifi only models at a lower price. Not to mention different sized Galaxy Tabs. Presently there is only Samsung and Apple with international branding, availability and significant sales in the tablet market. At present we know Apple's upgrade cycle( yearly), if Samsung upgrades at a faster rate they can snatch market share more quickly from Apple. I think Apple will be forced to upgrade the ipad on 2 to 3 quarterly basis instead of on the 4th quarter.
    Samsung is showing itself to be aggressive in the tablet market, which means we consumers will benefit at a faster pace.

  1. chippie

    Fresh-Faced Recruit

    Joined: May 2009

    -3

    @Jonathan-Tanya

    I don't see the big multinational companies pricing their tablets at the low prices that you think are reasonable. Why? Because they sell smaller smartphones for more than $500 without carrier subscriptions. Do you know that an unlocked iphone cost $800 to $1100? No reason for a brand named, well made and snappy performing tablet to be priced below $399. Archos is a local French brand that is not well known internationally by consumers. The Nook currently is in the US market( may go international), but has a business model that hopes to make-up for the lower price by selling print media( mainly books) directly to the device. I think the ipad's pricing uses this model also, however the media sales are coming up short for the ipad. And Apple may be looking for an excuse to raise the ipad's price. Perhaps the only excuse needed is that consumers think it is better if it costs more.

  1. product_alert

    Fresh-Faced Recruit

    Joined: Jan 2011

    -1

    I found this interesting comparison between Galaxy

    I found this interesting comparison between Galaxy Tab and iPad that is based on analysis of hundreds of their customer reviews. Your and your readers may be interested to see this analysis as well http://blog.amplifiedanalytics.com/2010/11/851/.
    You can also check reputation of other products if you go to http://www.amplifiedanalytics.com/V2P-Product-Reviews/Demo, enter the product name or number (like "Samsung LN55C650 55-Inch 1080p 120 Hz LCD HDTV") and click on "Submit" button. The system will aggregate and analyze customer reviews to calculate the reputation metrics for you and will let you read the reviews if you want to.

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