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January 04, 2011

Verizon Wireless Cuts Price on Galaxy Tab

Verizon Wireless recently cut the price of the Samsung (News - Alert) Galaxy Tab by $100, according to media reports.

Spetnik Technology News speculated the price reduction may have come about so that Verizon would increase sales and be more competitive with Apple's (News - Alert) iPad. The price reduction also comes as new tablets are expected to hit the market and become rivals to the Galaxy Tab and the popular iPad.

Verizon Wireless (News - Alert) and Samsung Mobile announced in October that the Galaxy Tab would be selling on Nov. 11, 2010 for $599.99, according to a company statement. That price did not require mobile contracts. Spetnik said Verizon instead offered users mobile broadband options for the Galaxy tab.

Verizon’s rivals offered the Galaxy Tab for $399 if users agreed to two-year contracts, according to Spetnik. It is noteworthy that T-Mobile (News - Alert) reduced the price for the Galaxy Tab to $349 if users took part in a contract, according to Spetnik.

Verizon sold over 1 million of the tablet devices in just two months after it was first introduced, according to Spetnik.

Spetnik also speculates the price reduction by Verizon could suggest slower sales in the United States for the device in recent weeks.

This is not the first time when a company dropped the price on a device. Spetnik notes that when AT&T dropped the price on the BlackBerry (News - Alert) Torch it saw increased sales.

The Galaxy Tab features an Android 2.2, a 7-inch touch screen, support for Adobe Flash 10.1, and a 1GHz Cortex A8 Hummingbird application processor, according to Verizon.

In a related story, TMCnet reported that Samsung showed a fancy version of the Galaxy Tab computer at an upscale show in the Netherlands called the Millionaire Fair. Called the “Luxury Edition,” the more expensive version of the Galaxy Tab features a leather case and a Bluetooth headset, says TMCnet. It is similar in ways to the mainstream Galaxy Tab. The Luxury Edition will be available through Jan. 31, 2011.

Ed Silverstein is a TMCnet contributor. To read more of his articles, please visit his columnist page.

Edited by Tammy Wolf

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