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Did we just live through “Crazy Pricing Week”?

First was the Logitech Revue Google TV at $299, then the Cisco Umi home videocon came along at $599 and yesterday we saw rumors tha the Samsung Galaxy Tab might launch at $399 on a 2 year contract with T-Mobile.

If that last one turns out to be accurate, it could end up as a disaster for the Samsung Galaxy Tab.  As I mentioned a few weeks ago, it looks like the Samsung Galaxy Tab will not have the software and app ecosystem to compete effectively with the iPad.  Heck even Google said Android 2.2 is not designed to run tablets.

These issues might be surmountable if the Galaxy Tab were to be priced competitively – and I mean something like $199 on contract and say $399 contract free.  The rumored $399 with a contract make it seem irrelevant, since anecdotal evidence suggests that only a small percentage of iPad owners have subscribed to the ontract free AT&T  data plan, which starts at just $15 per month.  The rumors also suggest that the unsubsidized Galaxy Tab might cost $649, which is slightly higher than the 16GB iPad 3G.

Samsung does have a history of expensive tablet pricing.  The company’s Q1 7-inch Windows XP tablet and Q1 Ultra follow-up device were too expensive to win significant consumer attention.  If the Galaxy Tab pricing rumors are true, expect to see limited numbers out and about.

Sheesh, that really was the week of crazy pricing.  Sure sales might have been down recently due to the weak economy but the way to win back sales is surely to price appropriately and look for volume buildup rather than having to endure price cuts that anger early adopters.  Apple already went through that with the original iPhone launch and hwere wise to avoid a similar pitfall with the iPad.

Neil Berman

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Oct 11, 2010 - Posted by | Analysis, Apple, Home Theater, Photo & Video, Mobile | , , , , , , , , , , , ,

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