Apple to Release Subsidized Tablet Through Verizon Later This Year?

[MacRumors]

The Street's Scott Moritz reports that Apple is planning to release its long-rumored tablet computer "in time for the holidays" later this year. While Apple is reportedly still deciding on a sales model for the new device, Moritz's source reports that initial plans include subsidies from Verizon in order to lock in users for multi-year wireless data contracts while bringing down the upfront cost to consumers for the device, which is expected to carry a premium price tag.

An initial version of the long-anticipated Apple tablet will be subsidized by Verizon, but Apple and Verizon "won't be as tightly integrated" as Apple's iPhone exclusivity deal with AT&T, says one source familiar with the companies, who asked not to be named.

Moritz's report of a premium price tag echoes comments made as recently as yesterday by Apple executives claiming that Apple can not deliver a netbook or low-end notebook at the $399 or $499 price point currently offered by others that still maintains a satisfactory user experience. Apple's tablet has been seen by many as Apple's revolutionary answer to those usability issues, and the Verizon subsidy is seen as a mechanism to address the upfront cost issue. The subsidy would almost certainly have to be considerably smaller than those seen for smartphones, however, as data-only wireless plans do not command the same monthly fees as the combined voice-and-data plans used on the iPhone.

AT&T, for example, collects about $100 a month from an average iPhone customer. The voice portion of that is $68.40 a month, or about two-thirds of the bill, says Michael Cote a wireless strategy advisor with the Cote Collaborative. A subsidy on a data plan device, would by necessity be smaller than one that comes with a phone, says Cote.

Verizon, the largest wireless provider in the U.S., has been the subject of a great deal of rumors regarding partnerships with Apple. Aside from continued rumors of the iPhone making an appearance on its network, Verizon has been mentioned as a partner for two rumored devices from Apple: an "iPhone Lite" and a "Media Pad" that corresponds in many respects to Apple's rumored tablet device.

Moritz has had a spotty record in the past with a number of inaccurate claims, although he was the first to correctly report last year that AT&T would provide subsidies for the iPhone 3G to bring the entry-level price point down to $199.

Article Link: Apple to Release Subsidized Tablet Through Verizon Later This Year?

 

[Tallest Skil]

Chalk up another "analyst" who has absolutely no clue.

Verizon? Seriously?

 

[Eidorian]

Full blown OS X or not? On Verizon...

 

[thegoldenmackid]

It makes no sense. What people forget about Apple is that people like the users on here will just buy it because it's from Cupertino. Moritz notoriously has hated Apple and was right with the MacBook Air, a tad bit off on the whole timing thing. But, completely off other places.

 

[upinflames900]

Really? And verizon now? I'm not sure about all this, sounds a little bit out there.

 

[iOrlando]

hmmm interesting.

i personally would not be interested in this device though, at least not now. Iphone + macbook = plenty of internet connectivity for me. Maybe by version 3 or 4 I will bite.

I also doubt holiday season 2009. Still think way into 2010 for anything concerning a tablet.

interesting though about subsidized price through a cellphone company.

 

[jmann]

Haha we'll see. Verizon already sells a netbook. I wonder if it will replace it?

 

[Cynicalone]

Verizon WTF?

So the millions of people with iPhone's would have to get a contract from two wireless providers?

 

[Thunder82]

Wow, these Apple/Verizon rumors are never ending. A CDMA/EV-DO device would limit global sales for Apple, it's just not going to happen.

 

[whooleytoo]

...Apple executives claiming that Apple can not deliver a netbook or low-end notebook at the $399 or $499 price point currently offered by others that still maintains a satisfactory user experience...

...and maintain their bragworthy profit margins. Reading the sentence above you'd think they were barely breaking even on every device sold.

 

[ProwlingTiger]

Please not Verizon. I'm switching to AT&T and not looking back.

 

[Eric S.]

As with all Mac tablet rumors, I'll believe it when I see it.

 

[niuniu]

Won't the data be really slow through the 3G network making it frustrating to open up fullsized webpages?

 

[SFStateStudent]

Doesn't VZ already have a deal with HP's netbook? I'm wondering if there's enough room for all these netbooks/MacTablet? VZ charges $39.99 a month for their wireless netbook service....

 

[QCassidy352]

Before this holiday season? Verizon? This doesn't sound right.

 

[iCantwait]

well that will be a success world wide on gsm networks then?

if australia get them, i'll sell a few "unlocked" to the will be verzion bashers - remember, everyone loved att before the iphone came out

 

[Thunder82]

Won't the data be really slow through the 3G network making it frustrating to open up fullsized webpages?

Nope. Data cards or a phone with Tethering ability allow you to do this with any computer already.

 

[perpetuity]

Why a tethered media pad?

Seems the target audience is too small when you sell such a device and demand that it be tied to a network contract.

Or, maybe just for me ... I'd buy one in a second if it were wifi only to use around the house as a news reader and media player. Once you tie it to yet another subscription fee I'm out man. Paying for a cell phone (iPhone in this case) is enough connectivity and I don't see how a tablet style device would gain penetration with such limitations.

Occam's Razor seems to apply here.

Perhaps a tablet like device which has the option to do an EVDO style dongle subscription but that would not rule out one buying it purely as a wifi device.

 

[WhySoSerious]

how about giving credit on this??

 

[TraceyS/FL]

I would expect some sort of "tray" card - thereby allowing you to use it on any carrier. But perhaps Verizon would have an exclusive on having it with a discount for X length of time. Pay full price at the Apple Store/elsewhere and get your own contract with another provider.

Dunno..... but it will be interesting to see what happens!

 

[Small White Car]

AT&T iPhone + Wi-Fi Only iPod Touch

Verizon Tablet + Wi-Fi Only Tablet ??

As long as they do it this way, I'm happy.

 

[olternaut]

I normally would be excited about this but.....I just can't.

I can't help but wonder how many chinese workers were tortured or killed to get this device to market.

 

[Mjmar]

Why do we need this? If people really need a portable device to do more than the iPhone they can get a 13" Apple notebook... A smaller 10" device just doesn't fit into the lineup. The only way I can see this succeeding is if the price is below $450... Apple said that a price like that won't happen...

 

[SFStateStudent]

Maybe Apple will cut about 5" from the MBAir's keyboard area, add another fan and another USB port and make the MBAir about a half inch thicker....

 

[SilentPanda]

That just seems weird to me. You move a fair amount of your U.S. user base to AT&T then offer a subsidized device on Verizon? There's no way I'm going to have an AT&T contract and a Verizon contract. I don't mind if they want to use the Verizon network but I'm not going to have two cell data plans that I pay monthly for.