Saturday, October 16, 2010

Verizon Bundling iPad with the MiFi

I got an interesting marketing email from Verizon this morning announcing the upcoming sale of the iPad.  This was not the interesting part, rather, it was the fact that they are promoting a bundled price that includes a 16GB iPad along with their MiFi mobile hot spot device.

Whats interesting about this, to me at least, is the fact that Verizon is using its current hardware, the MiFi, to bundle with the iPad (which they will only have the wifi version not the 3g version AT&T has).  Without this, Verizon would sell the iPad, make minimal profit from the sale of the device and thats it.  There is no recurring subscription fees from a wifi only device as far as Verizon is concerned.  However, by bundling it with the MiFi, they will lock the consumer into a mobile interent subscription service fee giving them the recurring income that they need to maintain.  pretty smart move, and this is from someone who despise these companies ;)

1 comment:

jjgardner3 said...

I agree with your conjecture and had it in my head, but forgot to get it out ;)
I think this is definitely a "gateway drug" to Verizon getting into the iPhone biz