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Verizon Does Galaxy Tab No Favors With Pricing

Verizon has become the first of the major U.S. carriers to announce pricing for Samsung’s Galaxy Tab.

In a somewhat surprising move, Verizon has priced the Tab at $600, just $30 less than the Apple iPad bundle the carrier will put on sale on October 28.

Neither device will require a contract with Verizon, allowing users to purchase the device on its own.

The pricing decision has raised eyebrows as it does little to help the Tab stand out from the iPad.  With its smaller screen (7 inches vs. the iPad’s 10 inches) and Android 2.2 OS, the Tab entered the market already trailing the iPad in some key respects.

The Tab will feature two cameras and the ability to send text messages, but neither feature is expected to be a “deal breaker.”

As the holiday shopping season nears, the close proximity of price points may hurt the Tab’s chances of being a real competitor to the iPad.  Despite being the older device, the iPad still has several advantages:

  • Name recognition – even mainstream, non “techie” users recognize the Apple and iPad name.
  • Larger screen – many consumers automatically equate bigger with better, especially when there’s so little price difference.
  • iTunes App Store – Apple still leads the way in number and variety of tablet apps, widening the appeal and usefulness of the iPad.
  • Tablet optimized OS – even Google has admitted that Android is not best suited for tablet devices, as opposed to Apple’s iOS.
  • Equally priced data plans – No real distinction between data plans for the Tab and the iPad gives Samsung one less selling point.

Overall, the pricing of the Galaxy Tab does Samsung no favors.  Attempting to unseat the entrenched tablet leader will be difficult enough for Samsung or any other challenger.

Being positioned as an equal or “lesser” value product may make the difficult, impossible.

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