Not sure if this is a complete lock-in but if TheStreet.com is right, then the Apple tablet’s wireless traffic is going to head for Verizon.
Like the article says, the good news is that means you’ve got a chance to grab a tablet subsidized down from whatever high list price Apple will likely slap on it.
The bad news is you’ve got to use Verizon. Granted, they’re 100x better than T-Mobile. But, my experience with them a few years ago was enough to drive me to Cingular (pre-AT&T “our-name-is-better” Wireless). They’ve got the best coverage? The best network, you say? Wonderful…except when your calls keep dropping out mid conversation because you passed some stupid “bubble” in their network. You’d think that driving through the middle of Los Angeles would leave you largely immune to that when you’re with a company that touts its network coverage.
Not to say that AT&T is some sort of white knight in all this. Five bars is great but if nothing’s passing through those five bars, who gives a fuck?
In the end though, you all will win to some extent. You’re going to be locked in to two-year contract but you might save a lot. After all, the new iPhones (each time they come out) list around $599 to $699 without the subsidy. But, then go down to $199 to $299 with it.
If the tablet comes out at around $999 or $1299 list, then the question is how much is Verizon willing to subsidize that sucker? We’re talking 100% more expensive than the iPhones that AT&T subsidized but despite that subsidy, AT&T profited.
I’m thinking they’re going to go for 30-50%. It’s costly but they’re also probably anticipating this to be the next “iProfit” device from Apple, whether it ultimately delivers or not. Apple’s track record so far would tend to back that up but then again, tablets have been around for years and no one’s really cared. Apple and it’s whole design aesthetic might be what pushes the tablet market into the mainstream but it’ll all depend on how they deliver the apps on it.
Unfortunately, all we can do is wait…seven days before we find out more (unless Apple pulls a fast one and just “shows” the press iTunes with books on it…I’d love that.
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