November
iPad Price War To Start Before Christmas?
Posted by admin at 3:58 PM.
There are strong rumours brewing today that UK users wanting to get their hands on a cheap iPad 3G will be very pleased at some of the new prices to be announced in the next couple of weeks, averaging out at just £26 a month, including all data costs.
Previously all iPad prices have been pretty much the same, with the cheapest 3G iPad being £529 with additional data services on top, which with O2 range from £2 a day pay-as-you-use to a £15 for 30 days use tariff.
Things look set to change however thanks to the Everything Everywhere network. What’s that, I hear you ask? It’s the new ’super network’ that has been made by the merger of Orange and T-Mobile. The idea is that by merging the two, reception is even better over a wider area, giving a clear technical advantage to going with them over the likes of O2.
O2 has in the past had many technical problems stemming from being the exclusive iPhone network for so long, including many dropped calls or reception dying completely in areas where the signal should be strong, presumably due to the large amount of data traffic hogging the network. This problem has lessened as restrictions on data usage have increased and other networks have been allowed to sell the iPhone, but it’s still a big concern for the phone networks.
By pooling resources, Orange and T-Mobile don’t have to worry about having the capacity for lots of data transfer, as a network that is essentially twice the size of a regular one can easily support that.
With that in mind, it’s clear they’ve decided to very aggressively go after Apple customers and tempt them away from O2 (still seen as the primary choice for iPhones, and by extension iPads). The first salvo in this war appears to be the announcement of a dramatic iPad price reduction.
Current rumours say that instead of paying £529 for the base iPad, Orange and T-Mobile are subsidising the devices (presumably as a loss-leader) so that customers will now pay just £200 for the iPad. The only catch is that they will be required to sign up for £15 a month data plans on an 18-month contract. Given that anyone wanting to use an iPad’s 3G functionality has to pay for it, this is still a great deal.
Over the course of the 18 months this means the user will pay a total of £270 for data plus £200 for the iPad which makes a total cost of £470, a saving of £59 over buying one from Apple, and that’s without data costs. So it’s good news all round for those looking for cheap iPads.
While there can be big price differences for iPad accessories and rival computers (such as netbooks), mainly due to the abundance of discount codes and vouchers offered by the larger retailers, the iPad itself has in contrast seen little price difference due to Apple’s fixed price points.
So naturally news of this price cut does make one wonder if Apple is happy about the situation, which leads us at cheapipad.com to suspect that a more general iPad price cut could be on the way before Christmas. We can surely expect a new model iPad sometime in the new year, now would seem to be the perfect time for a price cut to make sure anyone holding out for a new version decides to jump in after all.
