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News - Written by Renai LeMay on Sunday, May 9, 2010 14:53 - 15 Comments
Optus won’t sell the iPad either
Optus this afternoon confirmed that like Telstra, it wouldn’t directly sell the iPad when it launches in Australia on 28 May — but it will offer a number of pre- and post-paid 3G mobile plans specifically for the hyped Apple device.
Late on Friday night, Apple revealed it would start taking online Australian iPad pre-orders tomorrow (Monday 10 May) in preparation for its Australian launch day of 28 May. Apple said the iPad would be sold through its own retail outlets as well as its Australian website select Apple Authorised Resellers.
Telstra has so far only unveiled pre-paid plans for the iPad, but as it confirmed it wouldn’t directly sell the iPad this afternoon, Optus said it would have pre-paid and month-to-month 3G data plans for the device, as follows:
The company has not yet released any further details or terms and conditions of the plans, but it said it would provide further details of the plans “soon”.
Image credit: Delimiter screenshot of Optus email
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Anyone else finding it more than a little odd that – as far as we know so far – none of the carriers are planning on offering a subsidised, contracted iPad? I would have thought they’d leap at the chance to get people locked into another regular payment for a popular device.
I thought they would do this as well — but it is possible that Apple has thrown down the gauntlet and said that it won’t be selling the iPad through the telcos — given how much of a pain in the ass it makes support for Apple compared with support for its other devices.
Try getting a telco to replace your iPhone if it gets broken. It’s a “not fun” process that I have been through :)
I would have suspected that it would went more like this: 1) Carriers go to Apple saying that people aren’t going to fork out $900+ for a phone, then pay for a contract on top of that in Australia. 2) Carriers buy iPhones off Apple at discounted rate (call it a bulk-buying discount). 3) Consumers get iPhones on multiple-year contracts 4) Apple loses out because people are only upgrading their phones every 2 or 3 years as contracts expire because they’re not willing to pay awful contract cancellation fees.
Now, the thing is, the iPad isn’t a phone. It’s a computer (or, rather, it should be treated as one – debates about the devices usefulness aside). People don’t buy computers on a data service contract. I can’t imagine *any* consumer wanting to buy a device only to be locked into a contract for the data service. So, Apple realise that it’s in their best interest to not bother with the carriers and just sell the iPad themselves. that way, every sale is full retail price and people may be more inclined to upgrade every year as new ones one come (which is inevitable really).
Does that make sense, or am I rambling?
Oh, it makes sense that Apple WOULD sell the iPad contract-free, as they are doing (and as they do, in Australia, with the iPhone).
However, I think some people WOULD like to buy one on contract, like you can buy laptops & netbooks from Telstra, Optus or Vodafone on contract.
What I was trying to get at, is that Apple don’t see selling the iPad though the characters as crucial to the device’s take up as it was with the iPhone – so they’ve decided not to bother with all the drama and nonsense associated with that and just gone it themselves figuring that it’s not going to harm sales.
I agree with this:
“What I was trying to get at, is that Apple don’t see selling the iPad though the characters as crucial to the device’s take up as it was with the iPhone – so they’ve decided not to bother with all the drama and nonsense associated with that and just gone it themselves figuring that it’s not going to harm sales.”
However, I do think Apple is a bit stupid in this regard … I really don’t the company and its small number of resellers in Australia have anywhere near the scale that the telcos have in terms of retail shops. I think there is a fair degree of potential in having the telco sell the device, and as Bryn mentions, users actually want to be able to pay it off as they do their phones as well.
Typical Apple arrogance!
What you’re forgetting is that people don’t buy computers on contract from a data-provider. They’re really two products, so require two different sales strategies.
some people do- I believe the netbooks being sold by Vodafone, Optus & Telstra sell “ok”.
Yes, they are. But I believe those sales are insignificant in number compared to people just buying a laptop and the data connection separately.
I wouldn’t pay $20 for 2GB. Try 20GB, then we’ll talk.
I reckon it’s not too bad, and certainly if you can afford an iPad, you can afford an entry level plan at these rates. But yeah — compared to fixed pricing on broadband it’s fairly pathetic.
My guess is apple wants more kickback on the Telco sales, hence Optus and Telstra saying NO!
And yes, aussie broadband costs are the suck
I’m not sure that it’s more kickback that Apple wants — perhaps it’s actually just more control over the whole thing. If I was Apple, I would have realised during the iPhone process that the more you can keep the telcos out of the whole supply chain, the easier it is going to be for the user and Apple itself to get their hardware serviced and quite possibly even sold.
I’m not sure Apple is actually offering the device for Telco sale at this point. I think the only way they’d be able to do it is by buying them as a reseller, which means paying pretty much full price for them, something they are not keen on.
Generally the telcos are almost as arrogant as Apple, so yeah, I can’t really see them being that keen on doing this.