AT&T’s iPad Deal Due to Carrier’s Aggressive Pricing Strategy

AT&T Outbid competitors for iPad deal

The last week of January saw extensive speculations regarding the networks Apple would partner with in the launch of the iPad

Back then, Fox News had reported strong possibilities for the launch of two versions of iPad - running on GSM and CDMA respectively. 

Since then, it has been revealed that AT&T will be the sole partner offering data connectivity to the device. While a CDMA version of the device is still rumored to be in the works, there is no doubt that AT&T's pricing plan for the iPad are extremely competitive - $14.99 monthly for 250MB and $29.99 monthly for unlimited data usage, along with free use of AT&T Wi-Fi hotspots nationwide. 

So why didn't Apple look outside its existing carrier partner for the iPad? Clayton Morris from Fox News claims his sources as revealing that it was AT&T that secured the iPad deal by outbidding its competitors including T-Mobile and Sprint. He says AT&T's aggressive pricing strategy was the ultimate deal-clincher. For a perspective, compare the $29.99 per month unlimited data usage plan for the iPad with the company's plans for other mobile computing devices like HP Mini 110 and Acer Aspire One where the data plans are in the range of $60 for 5GB and $35 for 200 MB per month.

According to tech strategist Michael Gartenberg, the rumored Apple-Verizon partnership might not happen before Verizon moves to LTE technology which is expected to be completed not before the end of this year. 

The AT&T plan for iPad does not come with a contract and users are free to cancel it at any point in time. However, given the attractive pricing offered to iPad customers and also considering that other possible network partnerships are still sometime away, do you see this as a win-win situation for AT&T and their customers? Please tell us your thoughts in the comments. 

[via Fox News]

Categories : Apple Tablet, Carriers, iPad, iPad 1

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5 Responses to AT&T’s iPad Deal Due to Carrier’s Aggressive Pricing Strategy

  1. ipad? says:

    forget about the ipad, get the joo joo http://www.sfgate.com/cgi-bin/blogs/techchron/detail?entry_id=56641

    it comes out before the ipad.

  2. DXS101 says:

    man, if i had AT&T id convince them i had a ipad so I can have unlimited data for 30 bucks… im with rogers and there under the assumption I'm using a blackberry bold so my data plan is half the price then a iphone plan :)

  3. Tim says:

    Any news on UK carrier deals as yet??
    Asked O2 & Orange but they know nothing. Best one was O2 sales manager/gonk.
    Me: Any idea if O2 will be selling the Apple iPad??
    Sales Gonk: "No such product mate, you must mean the iPod"
    Me: "No, Apple released it 5 days ago"
    Sales Gonk: "No sir, they released the iPod years ago"
    Me: " i P A D, not iPod"
    Sales Gonk: "Must have been a typo sir"
    at this point, out comes my 3Gs and into Safari, shows Gonk the iPad pics on Apple website
    Sales Gonk: Ahh, amazing what you can do with Photoshop!! Can I interest you in the Nokia 5800??
    Me: (looking at him then my iPhone then back) No thanks, I have a 3Gs payandgo on O2
    Sales Gonk: oh, are they any good??
    I just walked out, I had to!! or I would have tried to beat the stupid out of him!!
    O2 Store, Trostre, Llanelli, Swansea, South Wales, UK…AVOID!!!! (or just go in if you enjoy getting wound up by untrained franchise Gonks) (Sales Girl there is stunning tho)

  4. Tankueray says:

    If the AT&T iPhone contract is up in June, it would behoove them to follow suit with the iPhone plans. T-mobile will probably follow suit with a cheap iPad plan, maybe even a combo iPad/iPhone plan.
    Apple just wants to sell their products, and soon won't care which carrier anyone uses. They could continue to get a $450 subsidy from AT&T for the iPhone, or sell them at $600 unlocked… As we're seeing with the 3.1.3 update, many users in other countries with iPhones got them from the US market, and they're getting locked back to AT&T. If AT&T is the unlock holdout, Apple won't need them in a few months.
    I guess we'll see with the iPad whether people are willing to pay up front for unlock and no contract.

  5. akrimay says:

    U make a good point Tankueray, but Apple is no fool. While At&T's customer service sucks..they are the biggest carrier around with the best service..if Apple chooses to go w/other carriers and they start complaining that's not gonna be good for them as far as sales go..Is my opinion that Apple makes the best products and they choose to go w/the best carrier.

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