Verizon was discovered tonight to be cutting the price of the Galaxy Tab to $500 contract-free. The steep, $100 drop should take effect soon and will also include $60 of movie rentals from Blockbuster's app or Samsung's Media Hub. Anyone who bought the Android tablet within the past two weeks can get a refund for the price difference, Droid-Life retail sources said.
The price drop comes just two months after the November release and implies serious concerns about the Galaxy Tab's sales prospects at Verizon. No information has surfaced to show whether the seven-inch slate has been selling well or poorly, but reductions of the sort aren't common so soon into a device's lifespan.
Most of the pressure may come from other Android tablets. Motorola's Droid Xoom will be launched at CES next week and could render the Galaxy Tab obsolete at its current price with a much faster NVIDIA Tegra 2 processor, a larger screen and Honeycomb instead of the already outdated Android 2.2. Samsung may also have a new 10-inch Galaxy Tab also using the Tegra 2.
The Galaxy Tab might similarly face pressure from the iPad. While the current iPad is near its end of life and could be replaced by a much upgraded model by early spring, its $629 price is only slightly higher than Verizon's original Galaxy Tab but has a larger screen and bundles in a MiFi that lets users share a connection across multiple users without having to spend extra on the hotspot plan Samsung's tablet requires.
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