Subsidized iPad - $299 - $199 - $99

[liavman]

There are a whole set of industries that are going to ride on the iPad and it is in their best interest that they subsidize the iPad like how the carriers do for the iPhone. But in the case of iPad, there is no single entity like the carrier who can provide the subsidy based on a two year contract. It has to be a combination of services. Someone needs to form a intermediate entity ( like the publishers' clearing house but covering a wider set of industries ) to consolidate various packages of services and sell the iPad on a subsidy basis.

For example, ( only an example ).

A package with 2 year commitment consisting of

WSJ, Time, and a few newspapers and magazine. $20 - $30 a month
Mobile Data Service: $30.00 a month
Book publishers: $20.00 month ( towards commited book purchases over a 2 year period for $480 )
FloTV: $15.00 a month ( FloTV already provides $90.00 off on service if you buy their hardware for $199.00 With iPad they only need to sell the cheaper adaptor, so there is easily scope for a $100-$150 subsidy on iPad )

Such a package should be able to bring down the subsidized price of the iPad to $299.00 easily, to $199.00 with some more partners, and even $99.00 if the packagers are aggressive enough.

What do you all think? What are such compelling packages that people actually spend on? Would this actually happen?

 

[Hammie]

There are a whole set of industries that are going to ride on the iPad and it is in their best interest that they subsidize the iPad like how the carriers do for the iPhone. But in the case of iPad, there is no single entity like the carrier who can provide the subsidy based on a two year contract. It has to be a combination of services. Someone needs to form a intermediate entity ( like the publishers' clearing house but covering a wider set of industries ) to consolidate various packages of services and sell the iPad on a subsidy basis.

For example, ( only an example ).

A package with 2 year commitment consisting of

WSJ, Time, and a few newspapers and magazine. $20 - $30 a month
Mobile Data Service: $30.00 a month
Book publishers: $20.00 month ( towards commited book purchases over a 2 year period for $480 )
FloTV: $15.00 a month ( FloTV already provides $90.00 off on service if you buy their hardware for $199.00 With iPad they only need to sell the cheaper adaptor, so there is easily scope for a $100-$150 subsidy on iPad )

Such a package should be able to bring down the subsidized price of the iPad to $299.00 easily, to $199.00 with some more partners, and even $99.00 if the packagers are aggressive enough.

What do you all think? What are such compelling packages that people actually spend on? Would this actually happen?

I don't know if I would want to be committed to all that stuff. The data plan is bad enough (even at a month to month commitment). Not that I'm overly excited about the prices, but Apple could have really shafted us with price points over $1K. The sad thing is that I feel many of us would have paid it.

 

[thejakill]

Seems like an awfully big commitment to save a few hundred up front.

No thanks. I'm already in a commited relationship with my iPhone. iPad will be my cheap fling.

 

[Chundles]

I can see our telcos (we have five networks with the iPhone here) offering free iPads with 2 year data contracts.

They do similar things with the iPhone, free phone for a 2 year contract.

 

[melman101]

Yeah, if anyone subsidizes, it will be the carrier's, not publishers. And if they do, it will be like a limited sale or something.

But anyway, I'm happy paying the price of the 3G iPad without being locked down to a contract.

Remember when we had to pay AT&T/Apple $600 bucks to have the privelege of paying them monthly with a data plan for 2 years . At least with the iPad, you don't need a contract .

 

[Robin4]

The only service package I would consider would be Flo TV and only because I am so sick and tired of my cable.

I don't want any subsidies. I'll pick what I want when I want it. The thought of being tied down to a monthly payment diminishes the enjoyment. If I want a yearly subscription (i.e. newspapers) I'll pay it upfront and be done with it.

 

[maflynn]

None of those items would compel me or interest me to buy a subsidized ipad. On the contrary many people prefer a non subsidized price provided that it's not too expensive and the ipad isn't