There are a whole set of industries that are going to ride on the iPad and it is in their best interest that they subsidize the iPad like how the carriers do for the iPhone. But in the case of iPad, there is no single entity like the carrier who can provide the subsidy based on a two year contract. It has to be a combination of services. Someone needs to form a intermediate entity ( like the publishers' clearing house but covering a wider set of industries ) to consolidate various packages of services and sell the iPad on a subsidy basis. For example, ( only an example ). A package with 2 year commitment consisting of WSJ, Time, and a few newspapers and magazine. $20 - $30 a month Mobile Data Service: $30.00 a month Book publishers: $20.00 month ( towards commited book purchases over a 2 year period for $480 ) FloTV: $15.00 a month ( FloTV already provides $90.00 off on service if you buy their hardware for $199.00 With iPad they only need to sell the cheaper adaptor, so there is easily scope for a $100-$150 subsidy on iPad ) Such a package should be able to bring down the subsidized price of the iPad to $299.00 easily, to $199.00 with some more partners, and even $99.00 if the packagers are aggressive enough. What do you all think? What are such compelling packages that people actually spend on? Would this actually happen?