AT&T to be first U.S. carrier to subsidize Apple's iPad

Posted:
in General Discussion edited January 2014
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.

iPad Subsidy
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.
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
Unfortunately, legacy unlimited data users are unable to take advantage of the deal.

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.
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Comments

  • Reply 1 of 47
    What largesse! Thanks but no thanks.
  • Reply 2 of 47


    Only $100?

  • Reply 3 of 47


    Nah, I'll just hotspot my iPhone.

  • Reply 4 of 47
    wizard69wizard69 Posts: 12,645member
    A $100 is a $100 and if you intend to use AT&Ts service anyways it might be a good deal. The qualifier is this; is the device unlocked? If not then no deal.
  • Reply 5 of 47
    msanttimsantti Posts: 1,377member
    Weak.

    $100 not enough for a 2 year commitment.
  • Reply 6 of 47


    For that you get a THIRD-generation iPad which is now going for $50 off the retail price normally. 

  • Reply 7 of 47


    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!

  • Reply 8 of 47
    solipsismxsolipsismx Posts: 19,566member
    For that you get a THIRD-generation iPad which is now going for $50 off the retail price normally. 

    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.
  • Reply 9 of 47
    so you are subsidizing $450 for an iPhone, but $100 for an iPad? thats messed up...
  • Reply 10 of 47
    entropysentropys Posts: 1,374member
    In Australia, Telstra offers an iPad for $48/month with 1GB of data zero dollars up front. $68/month gets you 8GB/month

    [IMG ALT=""]http://forums.appleinsider.com/content/type/61/id/16034/width/350/height/700[/IMG]
    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.
  • Reply 11 of 47


    Originally Posted by logandigges View Post

    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.

  • Reply 12 of 47
    hill60hill60 Posts: 6,989member

    Quote:

    Originally Posted by Entropys View Post



    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

  • Reply 13 of 47
    herbapouherbapou Posts: 2,214member


    They should do that with the mini too.  100$ on the mini would be a greater % rebate.

  • Reply 14 of 47
    chris_cachris_ca Posts: 2,543member






    Originally Posted by AppleInsider View Post




    The full range of tablet data plan options include:


    • AT&T Mobile Share: $10 to share between 1 GB and 20GB



    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.

  • Reply 15 of 47
    remereme Posts: 74member
    Thanks ATT, but no thanks. I dumped you and went with Verizon, free tethering which you'll be charging these new suckers for, right?
  • Reply 16 of 47


    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.

  • Reply 17 of 47
    id rather just buy one and then be able to buy the cellular data when I need it and shut it off when I don't. $100 is really weak for a 2 year commitment.... just shows how spoiled the US carrier are (the few that still remain).
  • Reply 18 of 47
    andysolandysol Posts: 2,506member
    so you are subsidizing $450 for an iPhone, but $100 for an iPad? thats messed up...

    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...
  • Reply 19 of 47
    So let me get this straight - save $100 now to only pay an extra $240 minimum over 2 years for a total minimum price of [B][U]$719[/U][/B]
    This is horrible. AT&T is hurting.
    The worst part is people will think this is actually a good deal.
  • Reply 20 of 47


    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.

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