AT&T to be first U.S. carrier to subsidize Apple's iPad
For the first time since the original iPad was released in 2010, a U.S. wireless carrier will subsidize the price of Apple's iPad with a signed two-year agreement, bringing the tablet's sales structure more in line with the iPhone.
Third-generation iPad with $100 promotional discount. | Source: AT&T
AT&T announced on Friday that it will be offering what it calls a "promotional discount" of $100 to customers buying a new tablet, including the new LTE-enabled iPad, attached to a two-year service agreement.
Starting today, customers in the market for a new tablet can take advantage of the subsidy as long as they sign on to a qualifying data plan, which can range from $10 per month to $50 per month. The iPad can also be added to one of the telecom's Mobile Share plans, in which a number of devices share data from a single quota, with plans ranging from 1GB to 20GB per month.
According to AT&T Chief Marketing Officer David Christopher, the promotion was created to incentivize holiday shopping, however it can be assumed that the launch of Apple's LTE-connected fourth-generation iPad and iPad mini also played a role in the new pricing.
The second-largest U.S. wireless provider has not set an end date for the promotion, and said it will be available as long as supplies last. No indication was given as to how many units of each tablet are being stocked, but interested customers must visit AT&T's online store or a brick-and-mortar outlet to claim the discount.
Third-generation iPad with $100 promotional discount. | Source: AT&T
AT&T announced on Friday that it will be offering what it calls a "promotional discount" of $100 to customers buying a new tablet, including the new LTE-enabled iPad, attached to a two-year service agreement.
Starting today, customers in the market for a new tablet can take advantage of the subsidy as long as they sign on to a qualifying data plan, which can range from $10 per month to $50 per month. The iPad can also be added to one of the telecom's Mobile Share plans, in which a number of devices share data from a single quota, with plans ranging from 1GB to 20GB per month.
Unfortunately, legacy unlimited data users are unable to take advantage of the deal.The full range of tablet data plan options include:
- AT&T Mobile Share: $10 to share between 1 GB and 20GB
- AT&T DataConnect 250MB: $15 for 250MB
- AT&T DataConnect 3GB: $30 for 3GB
- AT&T DataConnect 5GB: $50 for 5GB
According to AT&T Chief Marketing Officer David Christopher, the promotion was created to incentivize holiday shopping, however it can be assumed that the launch of Apple's LTE-connected fourth-generation iPad and iPad mini also played a role in the new pricing.
The second-largest U.S. wireless provider has not set an end date for the promotion, and said it will be available as long as supplies last. No indication was given as to how many units of each tablet are being stocked, but interested customers must visit AT&T's online store or a brick-and-mortar outlet to claim the discount.
Comments
Only $100?
Nah, I'll just hotspot my iPhone.
$100 not enough for a 2 year commitment.
For that you get a THIRD-generation iPad which is now going for $50 off the retail price normally.
Ok let's add the clues. 3 million sold in first weekend. And those were just WiFi only. Great reviews even from unlikely sources. Line ups even though you could order on line. ATT is going to subsidize to get in on the action. I do believe this means one thing... Apple is doomed. Apple has another blockbuster winner!
Note the retail price of that 3rd gen iPad is $50 than the cost for the 4th gen 16GB iPad WiFi+Cellular which is $629.
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It works out a bit dearer than outright purchase upfront then paying for a twelve month lump of data prepaid ($629 iPad 4 with cellular plus $180*2 for 24GB data over two years = $989) but if a person had trouble with ponying up the cost of an iPad outright it isn't too bad as total cost over two years is $1152.
edit: my bad, the Ipad with cellular is AUD$679, so the difference between upfront then buying data prepaid ($1039) and the 24 month plan is less.
Originally Posted by logandigges
so you are subsidizing $450 for an iPhone, but $100 for an iPad? thats messed up...
Well, the phone, you're paying for phone and texting, too.
Oh, wait, the texting is unlimited now, so the $0.00 it costs them becomes less relevant…
So just the phone, then. You're paying more, so they subsidize more.
Quote:
Originally Posted by Entropys
In Australia, Telstra offers an iPad for $48/month with 1GB of data zero dollars up front. $68/month gets you 8GB/month
It works out a bit dearer than outright purchase upfront then paying for a twelve month lump of data prepaid ($629 iPad 4 with cellular plus $180*2 for 24GB data over two years = $989) but if a person had trouble with ponying up the cost of an iPad outright it isn't too bad as total cost over two years is $1152.
edit: my bad, the Ipad with cellular is AUD$679, so the difference between upfront then buying data prepaid ($1039) and the 24 month plan is less.
In Australia I can get a new 16GB iPad (with cellular) $15 a month for 2GB data a month, zero up front and $26 a month for the iPad over 24 months from Vodafone.
$41 a month with 2GB data, $46 with 4GB, $56 with 10GB
They should do that with the mini too. 100$ on the mini would be a greater % rebate.
Originally Posted by AppleInsider
in addition to the $40 (1Gb) to $200 (20GB) for the mobile share plan. Add to this the price of another phone (or multiple) at $30-$45 each.
It appears MANY of you are working for big telcos, right? Or, you guys are now having trouble to add, subtract, multiply and divide? Or, many of you are very poor that you can't even buy iPads outright anymore? Are you really addicted to this so called financing? First, it starts with your housing, then your cars, then for taking a second mortgage, then for paying your credit card debts, and then for something that is not so much money to get like electronics and gadgets which actually can be purchased if you are willing to save some money on the side for perhaps one, two months or less. With about one third of US households still under water, I kinda wonder why...
Get smart people! For something that is priced under US 1000, you ought to be able to buy it outright. If not? You are not as smart or financially able as you think you are. You would become just easy killings for the big telcos. To get a financing for something inexpensive that is inherently regressing in values is financially irresponsible and utterly stupid because you lose money from the two fronts simultaneously.
They have to protect themselves for the shared plan. $10/month is $240 for two years. $100 ain't bad... Actually Better % savings vs iPhone. Att obviously wants even more incentive for people to do the shared plan. If you were planning on adding a tablet for $10/month anyway- now you get $100 for free if you were going to keep it two years anyway. If that's not what you want or you don't want to be locked up for two years.... Then don't do it.
Yesterday- people saved $0. Now they save $100 if they- key word- WANT to. People just love to complain...
This is horrible. AT&T is hurting.
The worst part is people will think this is actually a good deal.
What you fail to realize is that your not saving $100 by buying a subsidized iPad, your spending more money. Look at the math. Don't fool yourself into believing that because it's $100 less now that your saving $100. Look at the long term price you end up paying. Gesh....now I know how rent-A-centers make money - off the backs of the poor and destitute. You end up paying $3000 for a TV that's only worth $900.