[RockdaMan]

When Apple launched the iPad last year many were surprised at the aggressive pricing. This pricing strategy has proven to be brilliant, and forced competitors to look to carrier subsidies to get pricing low enough to generate sales. This is why we don’t see too many Wi-Fi only tablets hitting store shelves even though most companies announce them at launch. The reality is they cannot sell them cheaply enough to both compete with the iPad and make a profit.

Take away the carrier subsidy and these things are hundreds of dollars too high to generate a sales volume necessary to make a product successful. Tablet makers are between a rock and hard place, and they have been put there by a brilliant strategy by Apple.

http://www.zdnet.com/blog/mobile-new...ad-pricing/968