Verizon confirmed that it would subsidize the cost of the Motorola XOOM tablet on Tuesday, possibly answering critics that it is too expensive for consumers. While the Android-powered device was introduced at CES to generally good reviews, its $799.99 unsubsidized price could be seen as a deterrent.
Those who subscribe to a 2-year contracted data plan would receive the standard $200 subsidy, lowering the cost to $599.99. At that price, the device becomes a whole lot more competitive with its contemporaries such as Apple's iPad. Data plans would begin at $20 monthly for 1GB of data.
That sub-$600 price point may be the magic number for the device: an informal survey of Betanews readers indicate many would consider purchasing the device at that price point, although many still saw it as too much.
AT&T offers 2GB of data for the iPad at $25 per month, which compared to the Verizon plans, is cheaper overall. That carrier does not subsidize the cost of the iPad at all, which starts at $629 for the 16GB model. The XOOM would be offered in a 32GB capacity -- Apple charges $729 for its own 32GB model.
While the subsidized cost was to be expected, Verizon's move to offer a planned LTE upgrade attachment at no additional cost may come as a surprise. That attachment is expected to become available in the second quarter, the carrier said.
Motorola's XOOM is set to debut on Verizon Thursday.
Copyright Betanews, Inc. 2010
