Australian site Smarthouse revealed the price of the Samsung Galaxy Tab in their country will be A$999. That converts to, well, not much less in U.S. dollars. More shocking, it’s only A$50 less than the highest priced 64GB 3G iPad. Huh?
Samsung argues that the Galaxy Tab is a superior device with dual cameras, microSD reader, and USB port. They also claim:
“We have a size advantage because it fits in a pocket, it is a mobile…”
That’s fine, but you know what else fits in a pocket? A smartphone. The mobility argument helps distance the GT from the iPad, but it also brings it closer to smartphones, which are cheaper and even more mobile. And since most prospective buyers are going to have smartphones anyway (many with hotspot capabilities), Samsung is positioning their device in a way that makes it look both more expensive and more redundant. Sure, the iPad is redundant in many ways, but it’s not positioned as an alternative to an iPhone.
A price subsidy from Verizon will bring that upfront cost down in the U.S., but data-only plans typically get a $200 break (or less) and that’s with their $60 a month 5GB data plan. That brings it within fighting range of the iPad upfront, but as Xavier pointed out earlier, buyers tend to be more aware of deferred costs when you start running a credit check and pulling out contracts. Better or not, that price is going to tightly restrict the appeal of the Galaxy Tab.