Subsidized iPad Sales Off to Slow Start in UK?

[MacRumors]

Early last month, UK carriers Orange, T-Mobile, and Three debuted subsidized iPads, knocking the price of the entry-level Wi-Fi + 3G iPad model from £529 down to £199 for those customers willing to sign up for two-year data contracts in the range of £25 per month.

While the offerings obviously result in a substantial outlay for customers, it was thought that they would be enticing for customers who had planned on maintaining ongoing cellular data service for their devices instead of opting for only sporadic service on an as-needed basis.

But according to a new report from The Times as relayed by paidContent:UK, sales of the subsidized iPads are coming in far lower than had been expected, at least for Orange.

The company had expected to sell tens of thousands of iPads over the holidays, at a reduced price of £199 ($308) when the buyer took out a 24-month contract on the device. But according to industry sources, it has gotten off to a slow start: selling only 1,000 in its first week of sales.

The report notes that a recent research report suggested that 80% of UK iPad customers were opting for 3G-capable models in the lead-up to the holiday season, offering a significant pool of potential buyers for the subsidized offerings. But obviously either the prospect of a two-year contract was too daunting for customers unsure how much cellular data they would be using on their devices or Orange (and possibly the other UK carriers) failed to appropriately bring the offerings to the attention of customers who might have been interested in the packages.

Article Link: Subsidized iPad Sales Off to Slow Start in UK?

 

[studiomusic]

Because people don't want to be tied down to a contract for 2 years?!

 

[Queso]

Nobody is going to want to be tied to a 1st gen iPad for two years. Maybe the take up will increase when the 2nd gen device gets released.

I wouldn't bet on it though. If you want an iPad you buy an iPad. They aren't that expensive, not compared to a Mac anyway.

 

[mattkowalski]

How is anyone supposed to know how much data they'll be using over the next two years?

 

[Amnak]

Because people don't want to be tied down to a contract for 2 years?!

That and there is wifi in so many places now.

 

[alent1234]

people don't want another monthly payment. sell a data package you can share between all family members and devices and people will buy it

 

[scotty321]

My biggest purchasing mistake was buying a 16GB iPad WIFI+3G for $629 when I could have bought a 32GB iPad WIFI for $599.

I consistently run out of space on my iPad so I'm always deleting apps and videos and photos and music, but I've NEVER used 3G even once in almost a year.

For LESS MONEY, I could have had twice the space which I really need, and could have ditched the 3G which I never need.

 

[BertyBoy]

people don't want another monthly payment. sell a data package you can share between all family members and devices and people will buy it

Yeah, I suggested this to O2 years ago, something like £35pm for 600 minutes / 1000 texts and a new phone but spead across 2, 3 or 4 SIMs.

why have they sold so bad ? Because Orange is awful.

If O2 had the same deal, they'd sell millions.

 

[wolfshades]

Really - what would be the point of buying one, when the 1st generation is nearing end-of-cycle?

And yeah - tying yourself to a two year contract on top of that? Someone in marketing needs to have his head examined, I think.

 

[camholder]

people don't want another monthly payment. sell a data package you can share between all family members and devices and people will buy it

Agreed - I wouldn't use that much data on an iPad so the contract price is a bit steep. Offer a combined bundle on top of my iPhone data plan for an extra £15 a month and I might think about it.

 

[croooow]

knocking the price of the entry-level Wi-Fi + 3G iPad model from £529 down to £199 for those customers willing to sign up for two-year data contracts in the range of £25 per month.

the 16GB iPad 3G was $827 in the UK? Is that extra $200 the VAT?

$311 is too much to have to sign up for 2 years of a $40/month bill for a device that is about to be replaced. Plus I thought people in the UK weren't big on 2 year contracts for mobile devices.

 

[ipoppy]

There so much rumour flying around about new iPad coming out next month or something that there is no surprise on number of sales.

 

[Mullerman]

A long contract for a MK1 and you can get data plans using a mi-fi for half the price.

 

[Popeye206]

I agree with the comment about the 1st generation iPad. I wouldn't want to be tied to a 1st gen when I know the 2nd gen is coming out soon. Plus, it really seems as though you'd be better off with a wireless hot spot so you can use it for other devices and not just the iPad. Just does not seem like a good deal.

 

[Tunster]

I did all the calculations and the value for the Orange/T-Mobile iPads on contracts are relatively poor. Only 1GB (+1GB you get overnight you won't ever use because you're asleep) a month for £25? I know you're offsetting the cost of the 16GB 3G iPad over 24 months, but wow.

I ended up buying the 32GB 3G iPad and got a one-month rolling contract with 1GB data for £7.50 month. A little more overall if you calculate it over 2 years, but at least I can get rid of it at the end of a month.

 

[notjustjay]

The entire reason I perked up on the iPad in the first place was because of the promise of NO CONTRACT, on-demand access to 3G.

Otherwise I'd have bought an iPhone.

As it happens, I use the 3G virtually every day anyway, so I'm glad I went ahead and bought the 3G version. But I would have hated to be tied down to any length of contract.

(BTW - you guys think 2 years is bad, remember that the standard iPhone contract length in Canada is 3 years...)

 

[Popeye206]

My biggest purchasing mistake was buying a 16GB iPad WIFI+3G for $629 when I could have bought a 32GB iPad WIFI for $599.

I consistently run out of space on my iPad so I'm always deleting apps and videos and photos and music, but I've NEVER used 3G even once in almost a year.

For LESS MONEY, I could have had twice the space which I really need, and could have ditched the 3G which I never need.

Personally, I agree with this logic. My iPhone gives me mobility and access to info anywhere. My iPad will be used around the house or in the office where there is WiFi if I need it. 3G might make sense for people who travel a lot and want access everywhere.

 

[OllyW]

the 16GB iPad 3G was $827 in the UK? Is that extra $200 the VAT?

$311 is too much to have to sign up for 2 years of a $40/month bill for a device that is about to be replaced. Plus I thought people in the UK weren't big on 2 year contracts for mobile devices.

It now costs £541 as of today of which £90 is VAT.

 

[Tunster]

Plus, it really seems as though you'd be better off with a wireless hot spot so you can use it for other devices and not just the iPad. Just does not seem like a good deal.

These contracts do have BT Openworld Wi-Fi hotspot access (there are loads dotted everywhere in the UK), but still; 2 years is a lot and way too late in the light of the new iPad coming in March/April.

Don't forget people; these people on contracts could in theory still sell their iPad on eBay and pay in for a self-upgrade (if they're unlocked). It's the 1GB limit which make these deals suck.

 

[scott911]

I agree that the two year contract bit (while perhaps not bad in itself - we've all done that with phones) is a problem when you reaslize that the first generation is really at end of it's life cycle.

It could well be an entirly different situation when/if offered with the next ipad.

 

[sphoenix]

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 3_1_3 like Mac OS X; en-us) AppleWebKit/528.18 (KHTML, like Gecko) Mobile/7E18 Twitter for iPhone)

I don't understand how the 80% of idiots who submitted themselves to contracts over the holidays actually do so. They must have a well-paid job I guess. But anyone who lives in the UK and reads gadget blogs/websites & still buys an iPad at this time should be named and shamed.

 

[Popeye206]

(BTW - you guys think 2 years is bad, remember that the standard iPhone contract length in Canada is 3 years...)

But we expect a contract on a phone. This is common. Not on a computer device. I don't even think this went over well with the Netbooks here in the US that were sold like this.

 

[mogzieee]

Yes, considering nearly everyone has Wi-Fi in there homes, plus the options of BTOpenzone and Cloud Wi-Fi... 3G just isn't as popular as in the US in my opinion.

I have a 3G Orange iPad (pay as you go) and rarely spend over a couple of quid per month. I have Wi-Fi at home, Wi-Fi at university, Wi-Fi at university accomodation... and when I'm not in any of those, unlimited internet with vodafone on my iPhone contract.

Not even to mention that 3G coverage is usually in a distinct lack in the country. Even at university in Southampton, it's usually just GPRS.

Considering you're already paying £30+ per month on your iPhone, the idea of spending another £10+ on slow iPad interent just seems a bit silly. Pay as you go at 5p per MB seems a lot more sensible, despite the higher initial cost.

But the BIGGEST reason - why buying a christmas present for someone - you don't buy them something that is gunna CHARGE THEM a hella' lot for the next 24 months! I'm not surprised these subsidised sales haven't been great in the run up to christmas!

 

[louis Fashion]

Contract Scams

Do the carriers drop your monthly fee after you have paid for the device?

I would gladly pay for my device during the 2yr time period if - on the 25th month the payment dropped!

 

[Zepaw]

I am way to indecisive to lock myself into a 2 year contract. In this age everything changes so much in a year, nevertheless two, that I want to be able to get the shiny new thing when I want it. I can't even stand phone contracts. I would have paid about $1000 in ETF fees over the last year if I had to break a contract each time I jumped to something new.

I wish US did like some other countries and if you buy at the non-subsidized price you get a cheaper bill. They just keep the difference for themselves the way I do it.