Monday, November 12, 2012

Now Apple Inc. (NASDAQ:AAPL)’s iPads sold at lower prices by AT&T

Now Apple Inc.(NASDAQ:AAPL)’s iPad will be sold like the iPhone - as a bundled offering with a network carrier.

America’s AT&T has become the first company to offer the iPad at a subsidised rate under a two-year contract.

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According to an announcement by the No. 2 service provider in the U.S., AT&T will be offering a promotional discount of $100 to customers to buy a new tablet, including the new iPad, which is LTE-enabled capable of supporting 4G network, and attached to a two-year service agreement.

According to AT&T, customers can get a new iPad at a subsidised rate depending on the data plan that they sign up for which can range from $10 a month to $50 a month. The iPad can also be added to one of the telecom's Mobile Share plans, in which a number of devices share data from a single quota, with plans ranging from 1GB to 20GB per month.

The various data plan on offer with the iPad are -

AT&T Mobile Share: $10 to share between 1 GB and 20GB
AT&T DataConnect 250MB: $15 for 250MB
AT&T DataConnect 3GB: $30 for 3GB
AT&T DataConnect 5GB: $50 for 5GB

David Christopher, who is the Chief Marketing Officer of AT&T, said that the promotion was created to incentivize holiday shopping.

It is also an attempt by the company to synchronise its sales strategy with that of the iPhone and also as a way to further push sales especially with other competitors such as Google and Amazon breathing down its neck, with tablets that are priced cheaper.

While Apple is loath to reduce prices, since that would hurt its profit margins, partnering with network providers to offer the tablets at a cheaper price is a clever way to lure customers.

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