Tuesday, November 8, 2011

Samsung Galaxy Tab 7.0 Plus on T-Mobile absolutely can't compete with Amazon or B&N

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People use tablets at home or in those trendy coffee shops all the kids frequent these days. Samsung's drop to $249 for the Galaxy Tab 7.0 only applies to new two-year T-Mobile contracts for 3G service. The deal comes with a $10/month premium over standard 3G tablet service, bringing the true out-of-pocket purchase price to $449. At that price, why not consider an iPad?

No dice, Samsung and T-Mobile.

The overwhelming majority of people will not need 3G, let alone 4G, on a tablet. Amazon has the biggest marketplace on the internet, so the Kindle Fire will be an easy sell. And Barnes and Noble has brick-and-mortar stores in which it can get peoples' hands on the Nook Tablet. Nothing is as convincing when it comes to buying gadgets as being able to hold something in your hand.

Samsung still lacks the mindshare the other two companies have. Despite the Galaxy Tab's relative coolness as a device (1.2 GHz dual core processor, 16GB storage out of the box, Honeycomb), anything requiring a contract to compete on out-of-pocket device cost is never going to compete with Amazon or B&N. And anything adding a $10 monthly premium to that contract to make up for the "discounted" upfront cost is dead in the water.

P.S. Also, this device's name is way too long. 

This was originally posted to joeross.posterous.com.

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