Apple to Subsidize Tablet With Verizon Contract?

Apple Tablet Subsidized By Verizon

The partnership between Apple and Verizon appears to be on more than one front. After we reported yesterday that Cupertino could be announcing their plans to sell iPhone 4G through Verizon, we are now hearing that Verizon could also be partnering Apple in the sale of Tablets. 

According to Northeast Securities analyst Ashok Kumar, an indication for this comes from the fact that Apple has chosen Qualcomm as one of their chip manufacturers for the Tablet. Qualcomm is best known for their CDMA chipsets and with this partership, Apple might have also inadvertently revealed who the wireless partner is going to be. 

So what will such a partnership mean to the user? For starters, with such a partnership in place, Apple could be looking at subsidizing the cost and making the Tablet more affordable top the users. You might recall that the original price of the Tablet was rumored to be around $1000. Analysts however claim that a more realistic price without the subsidy could be around $800 and with a Verizon contract, users could expect to lay hands on the Tablet for as less as $600 –  in return for a two year data service contract amounting close to $60 monthly. 

With less than a week to go for the official unveiling, this news on subsidized Tablets is sure to spark a lot more interest among customers. However Kaufman analyst Shaw Wu claims that the prevailing component supply shortages would mean the Tablet will not be out before June of this year. That would also imply that Apple would be launching the iPhone 4G and Tablet at around the same time. 

How do you view this news? Does a $600 price make the Tablet all the more affordable? Please tell us in the comments. 

[via The Street]