Samsung Galaxy Tab On O2 Germany – Pricing Explained

We have been hearing a lot about the price of the Samsung Galaxy Tab in recent times. Most of that has however been about a lack in clarity regarding the actual price of the device. O2 Germany is one of the first companies to announce a comprehensive pricing scheme for the upcoming Tablet. Unlike most other contract plans, the O2 Germany plan distributes the cost of the tablet across a 24 month period so that the user will only pay a small amount every month.

This is how it works. Users buying a Galaxy Tab will have to pay an upfront fee of €99 to secure a device. This payment will also tie the user to a 24 month plan that will cost the user €27.50 every month. Interestingly though, this monthly fee does not offer any data plan in itself. Instead, this is merely for the possession of the device. The user will have to sign up for an additional data plan if they will also want to sign up for cellular data access.

The total cost at the end of 24 months turns out to be €759 ($1047). But at €27.50 a month, this is still a pretty affordable plan. And when you consider the economics of time value of money, you will concede that $1047 spread over 2 years is still lesser than a $500 price point that the user will need to pay upfront.

What do you think?