Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

AT&T Inc. (T) Ditching Tablet Subsidies – Pros and Cons for Consumers

AT&T Inc. (NYSE:T) had been selling both smartphones and tablets with deep discounts to purchasers, offsetting the deep discounts by writing in the price in the two-year contracts for data plans. Now, starting today, AT&T ir dropping the data contracts from all of its tablets, which will mean the company will sell these computers at full retail price.

AT&T Inc. (NYSE:T)

AT&T Inc. (NYSE:T) realized that it had to handle tablet computers very differently than smartphones. First and foremost, AT&T was not making much on tablet data plans, simply because tablets have fairly easy access to Wi-Fi in many parts of the country, which of course allows users to bypass the At&T network to download and transfer data. The subsidies  were designed to cover the loss for selling the tablets with two-year contracts. Now, with dropping the data plan contracts from the tablet computers, AT&T Inc. (NYSE:T) now can sell tablets at competitive retail prices but will drop the $5 monthly surcharge that its phone bills had attached that was for tablet computers.

But this article cited above also considered an additional step – AT&T Inc. (NYSE:T) should drop the rates for its various data plans, so the rates more accurately depict the data usage and no longer include the premium for subsidizing the tablets. So on the positive side, AT&T is dropping the contracts and the data-plan subsidies, which should help customers buy tablets with paying in “installments” over a two-year contract. On the downside, AT&T Inc. (NYSE:T) will sell tablets at a more competitive up-front retail price – but, purchasers won’t be tied down with a contract for data.

Whether this will pay off for AT&T Inc. (NYSE:T) will be something to watch over the next several months as a series of new tablets get released. This news will likely be watched by investors like hedge funds – including D E Shaw.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!