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Softbank offers fully subsidized iPad in Japan with 24 month contract

post #1 of 27
Thread Starter 
Japanese carrier Softbank will begin offering the 16GB iPad 3G for free when customers sign up for a 25 month, $56 a month contract, a new report claims.

Softbank's subsidy would contain no hidden costs that spread the cost of the iPad over the term of the contract. The customer will need only sign a 2 year contract for $56 a month in order to receive a free 16GB iPad 3G, mocoNews reports.

As the sole distributor of the iPhone in Japan, Softbank has enjoyed the tremendous success of the device. In April, Tokyo's MM Research Institute Ltd. issued a report revealing that Apple captured a massive 72 percent of the Japanese smartphone market for the fiscal year ending March 31.

Japan recently saw the launch of the new cloud-centric Apple TV and the iTunes Movie Store. Major international and top Japanese studios, such as Asmik Ace Entertainment Inc., Fuji TV, Kadakowa Pictures, Nikkatsu, Shochiku Company Limited and Toei Company Limited, are offering their movies on iTunes.

Apple appears to be allowing heavy iPad subsidies in regions where its iAd program is preparing to launch. The Cupertino, Calif., company announced earlier this month that it will expand iAds into Japan early next year with the help of Japanese advertising partner Dentsu.

iAd will also launch in Europe in December. The launch has attracted the attention of European and global brands alike, including L'Oréal, Renault, Louis Vuitton, Nespresso, Perrier, Unilever, Citi, Evian, LG Display, AB InBev, Turkish Airlines and Absolute Radio.

"We're thrilled to add leading global brands to the iAd Network in Europe and create even more great opportunities for developers," said Andy Miller, Apple's vice president of iAd, when announcing the expansion into Europe. "In just four months, weve doubled the number of advertisers on the network and thousands of developers now have a valuable new source of revenue."

Shortly after Apple's announcement that it will bring iAd to Europe, Orange UK revealed its plan to sell the iPad 3G at a discounted price with a 3G data plan.
post #2 of 27
Quote:
Originally Posted by AppleInsider View Post

The customer need only sign a 2 year contract for $56 a month in order to receive a free 16GB iPad 3G, MacNN reports.

Need only to sign a (nother) 2 year contract with Softbank? Thanks but....
post #3 of 27
I'm paying close to $100 USD / month here in Japan for my unlimited iPhone 4 data plan. They expect me to pay an additional $56 for an iPad? That's why I'll be jail breaking. SoftBank sucks and so does their network. Only reason I'm with them is because no other carriers have the iPhone. I'd switch in a heartbeat to Docomo if they had the iPhone 4. Here's hoping for a Docomo iPhone 5.

I wonder if they'll do anything for people iP4 users who want an iPad? Nope. Can the iP4 and iPad SIM be swapped? Nope.
post #4 of 27
Quote:
Originally Posted by success View Post

I'm paying close to $100 USD / month here in Japan for my unlimited iPhone 4 data plan. They expect me to pay an additional $56 for an iPad? That's why I'll be jail breaking. SoftBank sucks and so does their network. Only reason I'm with them is because no other carriers have the iPhone. I'd switch in a heartbeat to Docomo if they had the iPhone 4. Here's hoping for a Docomo iPhone 5.

I wonder if they'll do anything for people iP4 users who want an iPad? Nope. Can the iP4 and iPad SIM be swapped? Nope.

How come? iPhone4 data plan only cost ¥4.200 or about $50. Docomo offers iPhone4 data plan if you bring unlocked iPhone4 from overseas.
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post #5 of 27
hi
can you pls tell me if when i buy the 3G iPad from softbank in japan if i can insert any micro sim card when abroad?
i have heard it was locked to softbank when in japan but is unlocked when outside of japan.
is this confirmed?
thanks
post #6 of 27
Quote:
Originally Posted by fuwafuwa View Post

How come? iPhone4 data plan only cost ¥4.200 or about $50.

4,200 + monthly phone plan etc = about 10,000.
Quote:
Docomo offers iPhone4 data plan if you bring unlocked iPhone4 from overseas.

It's not a normal data plan for smart phones. The speeds for browsing etc are VERY slow. You need to read the fine print. I spent weeks researching Docomo before I bought my iPhone at SoftBank since I can get a factory unlocked iPhone from Apple Canada because I'm Canadian. I was thinking about using an unlocked iPhone from Canada on Docomo but it wasn't worth it.
post #7 of 27
I think the new plan will get some "switchers". Have a friend who almost bought an iPad this week... was thinking WiFi only. Is very happy about this and will wait a few days to buy in.

I have SoftBank's Pocket WiFi for a little over $40 a month so that I can use my MacBook Air on it as well as let the wife surf with her iPad or notebook. When that contract runs out, there will be new iPads (version 3) and iPhones hopefully will allow tethering...

 

Your = the possessive of you, as in, "Your name is Tom, right?" or "What is your name?"

 

You're = a contraction of YOU + ARE as in, "You are right" --> "You're right."

 

 

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Your = the possessive of you, as in, "Your name is Tom, right?" or "What is your name?"

 

You're = a contraction of YOU + ARE as in, "You are right" --> "You're right."

 

 

Reply
post #8 of 27
Quote:
Originally Posted by success View Post

4,200 + monthly phone plan etc = about 10,000.

You said you paid $100 for data plan, but actually the data plan + etc that is $100. Most of my friends are on SoftBank, so the "etc" part is almost 0. If most of your friends/fellows use BlackBerry, thus use Docomo, it can't be helped if you end up paying $100/month.

Quote:
It's not a normal data plan for smart phones. The speeds for browsing etc are VERY slow. You need to read the fine print. I spent weeks researching Docomo before I bought my iPhone at SoftBank since I can get a factory unlocked iPhone from Apple Canada because I'm Canadian. I was thinking about using an unlocked iPhone from Canada on Docomo but it wasn't worth it.

Oh, I didn't know this because never crossed in my mind to buy Docomo. If I bought Docomo, I would be "bullied" by friends (no call, just text)
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post #9 of 27
Quote:
Originally Posted by Bergermeister View Post

I think the new plan will get some "switchers". Have a friend who almost bought an iPad this week... was thinking WiFi only. Is very happy about this and will wait a few days to buy in.

I have SoftBank's Pocket WiFi for a little over $40 a month so that I can use my MacBook Air on it as well as let the wife surf with her iPad or notebook. When that contract runs out, there will be new iPads (version 3) and iPhones hopefully will allow tethering...

If you or your friend have developer account, you can install socks proxy apps on your iPhone using ad hoc distribution.
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post #10 of 27
Both of us are mere mortal users.

 

Your = the possessive of you, as in, "Your name is Tom, right?" or "What is your name?"

 

You're = a contraction of YOU + ARE as in, "You are right" --> "You're right."

 

 

Reply

 

Your = the possessive of you, as in, "Your name is Tom, right?" or "What is your name?"

 

You're = a contraction of YOU + ARE as in, "You are right" --> "You're right."

 

 

Reply
post #11 of 27
My Canadian iPhone 6 GB data plan cost $30/mo + another $30 for calling. I believe AT&T's US counterpart is a little more for an unlimited data. I seldom us over 250 MB a month. And I can tether for no additional charge.

Now we hear that Japan in basically no different. Same for the rest of the world.

And if anyone really thinks that adding another company in your country to the mix drives the prices down, I have an international bridge crossing Pugent Sound for sale.
post #12 of 27
Quote:
Originally Posted by AppleInsider View Post

Japanese carrier Softbank will begin offering the 16GB iPad 3G for free when customers sign up for a 25 month, $56 a month contract, a new report claims.



Just like the Android BOGO, except they just give it to you free. Android got popular because when you buy one, you get a second one for free. iPads are just plain free, no need to buy one first!.
post #13 of 27
Quote:
Originally Posted by success View Post

I'm paying close to $100 USD / month here in Japan for my unlimited iPhone 4 data plan. They expect me to pay an additional $56 for an iPad? That's why I'll be jail breaking. .



That is stealing.
post #14 of 27
Quote:
Originally Posted by Jabiko View Post

Just like the Android BOGO, except they just give it to you free. Android got popular because when you buy one, you get a second one for free. iPads are just plain free, no need to buy one first!.

Except, Apple publishes its segment margins on iOS devices for all to see (and they are quite healthy, thank you), while not one Android manufacturer provides its.

If that doesn't tell you that their margins are pathetic, I've got some beachfront property in Arizona to sell you.
post #15 of 27
Quote:
Originally Posted by anantksundaram View Post

I've got some beachfront property in Arizona to sell you.

Is it on Lake Powell? Beautiful countryside!
post #16 of 27
duplicate. sorry.
post #17 of 27
Quote:
Originally Posted by anantksundaram View Post

Except, Apple publishes its segment margins on iOS devices for all to see (and they are quite healthy, thank you), while not one Android manufacturer provides its.



The Android manufacturer sells phones to carriers at wholesale prices. Just like Apple.

The carriers see what is selling, and what is not. They then take the slow-selling stuff like Android and run a big BOGO sale.

The even slower stuff gets given away for free, like the iPad.

But the manufacturer gets the full wholesale price either way. You think Apple is giving free iPads to the carriers?


I'm surprised that they didn't try to BOGO the iPad first. My assumption is that they figured that would not be a good enough deal to attract business, so they decided to just give them away for free. Sounds like they are desperate to get rid of excess inventory.

What's next? Will they pay people to take them away?
post #18 of 27
Quote:
Originally Posted by success View Post

I'm paying close to $100 USD / month here in Japan for my unlimited iPhone 4 data plan. They expect me to pay an additional $56 for an iPad? That's why I'll be jail breaking. SoftBank sucks and so does their network. Only reason I'm with them is because no other carriers have the iPhone. I'd switch in a heartbeat to Docomo if they had the iPhone 4. Here's hoping for a Docomo iPhone 5.

I wonder if they'll do anything for people iP4 users who want an iPad? Nope. Can the iP4 and iPad SIM be swapped? Nope.

This is a subsidy of the entire cost of the iPad with a data plan, which you need for the 3G version anyway. They are not going to add that data plan to your iP4 sim, makes no business sense.

You can still buy an iPad 3G and get a sim, they are - by definition - unlocked. This seems like a pretty good deal.
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post #19 of 27
Quote:
Originally Posted by Jabiko View Post

The Android manufacturer sells phones to carriers at wholesale prices. Just like Apple.

The carriers see what is selling, and what is not. They then take the slow-selling stuff like Android and run a big BOGO sale.

The even slower stuff gets given away for free, like the iPad.

But the manufacturer gets the full wholesale price either way. You think Apple is giving free iPads to the carriers?


I'm surprised that they didn't try to BOGO the iPad first. My assumption is that they figured that would not be a good enough deal to attract business, so they decided to just give them away for free. Sounds like they are desperate to get rid of excess inventory.

What's next? Will they pay people to take them away?

Basically your argument seems to be that no tablet is selling, at least in Japan. That is not true.

BOGO, and free device ( common even for iPhones outside the US), are designed to incur an upfront cost to defer revenue. What the carrier earns here is 24 * $56 which is $1344.

The carrier then makes $1344 - $whole sale cost of 16GB iPad 3G - I am guessing abour $400. Possibly $500.

So profits are $900-$1k.


Carriers really want to sell iPads with 3G for obvious reasons, and for obvious reasons customers are reluctant to pay for 3G retail price. A data plan is essential to a iPad 3G, so the customer who bought a 3G version in the Apple store would then have to shop around for a data plan. That's a huge wast of money.

It is no-brainer to get from the carrier at the subsidy of "free", and it is a no-brainer for the carriers to sell them for free. The big mistake is buying a 3G verions from Apple, or an Apple store and then looking for a data plan.

In fact expect most every single carrier int he world to sell iPads from next year. For "free" , or a nominal price.
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post #20 of 27
Quote:
Originally Posted by Jabiko View Post

The Android manufacturer sells phones to carriers at wholesale prices. Just like Apple.

The carriers see what is selling, and what is not. They then take the slow-selling stuff like Android and run a big BOGO sale.

The even slower stuff gets given away for free, like the iPad.

But the manufacturer gets the full wholesale price either way. You think Apple is giving free iPads to the carriers?


I'm surprised that they didn't try to BOGO the iPad first. My assumption is that they figured that would not be a good enough deal to attract business, so they decided to just give them away for free. Sounds like they are desperate to get rid of excess inventory.

What's next? Will they pay people to take them away?.

The reason the carrier is willing to give free iPads is to lock customers into a 2 year contract for $56 a month. Thats $1344. They buy the iPads wholesale from apple for probably around $500-$600 so they still make a healthy profit and everyone is happy. The need for them to give them away free is because they are competing with wifi iPads and this is the way to persuade the people deciding which one to get.

Compare this against AT&T, the customer buys the iPad for $630 and then over the same 2 year period would spend about $600, for a total of $1230.
post #21 of 27
Quote:
Originally Posted by Jabiko View Post

That is stealing.

He's stealing something for which he's already paying. Don't think that's stealing.
post #22 of 27
Quote:
Originally Posted by asdasd View Post

This is a subsidy of the entire cost of the iPad with a data plan, which you need for the 3G version anyway.

I do? Not when I'm going to tether my WiFi iPad to my iP4 via jailbreak. 6,000円 for NTT at home, 10,000円 for iP4 PLUS 6,000円 for iPad? LOL Yeah, right. These carriers aren't getting another 円 from me.
post #23 of 27
Quote:
Originally Posted by success View Post

I do? Not when I'm going to tether my WiFi iPad to my iP4 via jailbreak. 6,000 for NTT at home, 10,000 for iP4 PLUS 6,000 for iPad? LOL Yeah, right. These carriers aren't getting another 円 from me.

You do if you are the kind of person who doesnt jailbreak. Not you obviously. I was using the general "you", for the general population. They need a data plan for a 3G iPad.
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post #24 of 27
Too steep for me...
post #25 of 27
Quote:
Originally Posted by bcahill009 View Post

Compare this against AT&T, the customer buys the iPad for $630 and then over the same 2 year period would spend about $600, for a total of $1230.

But the AT&T iPad can have the 3G service turned off for any length of time (say I go out of country for a while or are otherwise unable to use the service). The comparison is not the same at all. I know folks who have 3G iPads that have only used the service 1/3 of the months they had the device.

I think this is a bad deal except for the most rigorous users (who would probably be better served by a mifi/hotspot anyway).
post #26 of 27
Quote:
Originally Posted by Onhka View Post

My Canadian iPhone 6 GB data plan cost $30/mo + another $30 for calling. I believe AT&T's US counterpart is a little more for an unlimited data. I seldom us over 250 MB a month. And I can tether for no additional charge.

Now we hear that Japan in basically no different. Same for the rest of the world.

In Japan unlimited means 300G. That's why it doesn't make sense for business to allow tethering.

Quote:

And if anyone really thinks that adding another company in your country to the mix drives the prices down, I have an international bridge crossing Pugent Sound for sale.

Actually this is common practice in Japan to sell handset at ¥0 with 2 years contract. In their marketing term it is called pay in installment. If for example you decide to break the contract before 2 years, you must pay ¥10.000 termination fee + remaining unpaid installment.
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post #27 of 27
Quote:
Originally Posted by fuwafuwa View Post

Actually this is common practice in Japan to sell handset at ¥0 with 2 years contract. In their marketing term it is called pay in installment. If for example you decide to break the contract before 2 years, you must pay ¥10.000 termination fee + remaining unpaid installment.

分割 (bunkatsu) / 解約金 (kaiyakukin) aren't really the problem as those systems are common in many places. The problem is not offering plans for existing customers.

Quote:
Originally Posted by fuwafuwa View Post

In Japan unlimited means 300G. That's why it doesn't make sense for business to allow tethering.

? It makes perfect business sense. It's called getting your money's worth and making your customers loyal.


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