Sprint to Sell Samsung Tablet for $400
Sprint Nextel Corp. said it plans to sell Samsung Electronics Co. Ltd.’s Galaxy Tab tablet computer for a third less than Verizon Wireless, though Sprint will require a long-term contract.
Sprint will sell the device for $399.99 in exchange for a two-year commitment to a data service plan. Sprint will begin selling the Galaxy Tab on Nov. 14, three days after Verizon Wireless.
Verizon Wireless said last week it would sell the device for $599.99, but offered a prepaid data plan without the requirement for a contract.
For any mobile product, getting the proper marketing and subsidy support from a carrier is crucial to a successful launch. A subsidized device can dull much of the sticker shock that comes from seeing the actual retail prices. Carriers are willing to offer a discount because they can lock customers into multi-year service agreements.
Verizon Wireless’s decision to sell the product without a subsidy had some industry analysts speculating that it wouldn’t fare well against the iPad, which the carrier also plans to sell for as little as $629.99.
