AT&T stops its sales of subsidized tablets

Like most carriers, AT&T sells cellular network-compatible tablets. Some of them are sold on subsidization, a term that basically means you are paying off your device (that you got at a “discount”) throughout your carrier’s contract. Others are sold at full price, meaning that you could go anywhere else and get the same price.

But now, AT&T has done away with selling tablets on subsidization – and will begin selling all of its tablets for the full price, minus a contract. The news comes from a leaked AT&T memo that Engadget obtained, wherein AT&T states that:

“Customers purchasing a tablet after August 19, 2012, no longer have a two-year pricing option. The only option available will be the no commitment pricing.”

The memo turned out to be true, as none of AT&T’s tablets are currently for sale with any sort of a subsidized price.

This does bode well for consumers, though. As you probably already know, subsidization makes monthly plans more costly. As a result of cutting subsidized tablets, AT&T has been able to lower the price of monthly tablet data plans by $5; now, the prices are 250MB for $15, 3GB for $30, and 5GB for $50.

What are your thoughts on subsidization? Do you like that your monthly bills will be $5 cheaper, or would you have rather saved the money upfront?

[Engadget via CNET]
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Calob Horton

Calob Horton is an associate editor at Pocketables. He loves all technology, no matter which company it comes from. This unbiased view of the tech world allows him to choose the products that best fit his personal needs and tastes: a Microsoft Surface Pro, a Samsung Galaxy Note 3, and a third-gen iPad.Google+ | Twitter | More posts by Calob | Subscribe to Calob's posts