AT&T offers $200 off on iPad for purchase of iPhone 5S, 5C. What's the catch?

Customers who have not gotten around to getting themselves an iPhone 5s or 5c can do so now with AT&T, making them eligible to get a brand-new iPad with a $200 discount.

Available only in stores owned and operated by AT&T, the promotion should help the carrier move stocks along in anticipation of the release of the iPhone 6 and new iPads. This could also be a means for AT&T to boost revenue by getting customers to add internet-connected devices to data plans they are already subscribed to.

To take advantage of the $200 discount on an iPad, a customer has to buy a new iPhone 5s or 5c. This means either paying full price for the iPhone or financing it over the course of 24 months. At full price, an iPhone 5s costs $650 for a 16GB version while the 5c starts at $550 for the same variant. With financing and the option to upgrade afterwards, this means a customer will have to pay $27.09 a month for 24 months for a 5s while it would cost $22.02 a month for the same period for an iPhone 5c.

For the available iPads, it must be noted that AT&T is only offering those that come with cellular access. Customers must also keep in mind that any iPad purchased from the promo will have to be hooked up to a two-year data plan from AT&T. With the discount in place, newer iPad models like the 16GB iPad Air now just cost $430, a $200-drop from $630.

For those interested in an iPad mini without a Retina display, an even better deal is available. From the usual $430 price tag, an older iPad mini can now be bought for just $200. It's not a $200 discount this time; it's the actual price of the device. But like its big brothers, the iPad mini from AT&T comes with a two-year data plan.

Overall, the promotion can be highly appealing to anyone interested in getting a new iPhones and iPads from AT&T, particularly those who don't mind buying older models of the devices even though the newer ones are right around the corner. With majority of Americans already owning a smartphone, this shift in promotion to highlight discounts on the iPad can bring in more tablet subscribers for AT&T. Last quarter, a third of new monthly subscriptions for the carrier were for tablet devices.

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