Money Matters - Simplified

Verizon explains $600 price tag for Galaxy Tab

With the tablet hitting the stores Nov. 11, Verizon customers will only have to pay for monthly data usage, starting from $ 20 a month for 1 GB.

Verizon has defended the price of $600 for Samsung Galaxy reminding that no service contract is required for the buyers. The phone, equipped with 3G cellular service and Wi-Fi will be available from 11th of November. Otherwise Verizon and other service providers the customers to sign a two year contract for purchasing a smart phone.

Verizon has defended $600 price of Samsung Galaxy reminding that no service contract is required for the buyers, and also the device offers 3G cellular service, and Wi-Fi.

With the tablet hitting the stores Nov. 11, Verizon customers will only have to pay for monthly data usage, starting from $ 20 a month for 1 GB.

Data usage based plans
Brenda Raney, spokeswomen, Verizon informed that the charges are same as that of buying a Wi-Fi iPad combined with Mi-Fi hot spot which will be available from Oct, 28.

Verizon will also charge $20 for 1 GB, $35 for 3 GB, $50 for 5 GB and $80 for 10 GB per month.

Some experts have criticized the $600 price tag of Galaxy Tab as compared to iPad which is priced at $ 499 for a 16 GB version. But the users who buy from AT&T will have to pay additional $130, which takes the price to $629, nearly $30 higher than the Galaxy.

Raney said these no contract plans are exclusively for tablets as these are the new products for Verizon. She declined to comment whether Verizon is going to introduce more tablets in near future.

The no contract policy of Verizon characterizes the new approach of carriers towards data pricing. It is somewhat similar to that of AT&T which is charging $14.99 monthly for 250 MB and $25 for 2 GB.

Raney asserted Verizon’s commitment towards providing new technology to its customers and said that the pricing on the basis of data usage shows how people use these devices which are 3G ready and WI-Fi enabled.

Some experts have criticized the $600 price tag of Galaxy Tab as compared to iPad which is priced at $ 499 for a 16 GB version. But the users who buy from AT&T will have to pay additional $130, which takes the price to $629, nearly $30 higher than the Galaxy.

Another feature galaxy has is a port that can extend its memory to 32 GB from internal memory of 16 GB.

Comparing with iPad
The new tablet by Samsung will definitely rev up competition in the market.

Though it resembles iPad, Samsung Galaxy is different.

For instance, it comes equipped with two cameras, a 1.3 mega pixel camera at the front and another 3.2 mega pixel camera at the back of the device. But the iPad has no camera.

A major difference between both the devices is the size of the touch screen. Whereas iPad scores with a 9.7 inch screen, Galaxy has 7 inch screen but the weight of iPad with 3G and Wi-Fi is 1.6 lbs but galaxy weighs only 0.84 lb

All the four major U.S. carriers are offering Galaxy Tablet but none has come up with a price tag or an availability schedule so far.