UPDATE 1-Verizon prices Samsung Tab just under iPad

* Tab to cost $600 at Verizon vs $630 for iPad

* Analysts see price tag as too high vs iPad

NEW YORK, Oct 20 (BestGrowthStock) – Verizon Wireless, the No. 1
U.S. mobile service, plans to sell Samsung Electronics’s
(005930.KS: ) Galaxy Tab for $30 less than Apple Inc (Read more about Apple stock future.)’s (AAPL.O: )
iPad, but analysts say the new tablet computer is priced too
high.

Verizon Wireless, a venture of Verizon Communications
(VZ.N: ) and Vodafone Group Plc (VOD.L: ), said on Wednesday that
it will sell the Tab for $599.99 on Nov. 11. It will also
charge a $20 fee per gigabyte of data downloaded.

The announcement comes days after Verizon said it would
also start selling the Wi-Fi version of the iPad later this
month for $629.99, including an accessory that allows users to
connect its network.

Current Analysis analyst Avi Greengart said the Verizon
Tab’s price is too high because consumers will view iPad as a
better product.

The Tab is just one of several products due to compete with
the iPad in the burgeoning tablet computing market. BlackBerry
maker Research in Motion (RIM.TO: ) is planning to launch its
PlayBook next year. The market is expected to be price
sensitive. [ID:nN24171851]

“Competitors coming into the market have to offer something
better, different or cheaper,” said Greengart, adding that a
price tag of less than $400 would have been better.

He noted that the Tab has advantages over the iPad,
including a camera, support for Adobe Systems’ (ADBE.O: ) Flash
technology and smaller size. But Apple’s strong brand name,
iPad’s arrival on the market first, and its bigger selection of
applications gives the iPad a head start on the Tab.

Greengart said that the smaller screen, while easier to
carry, should also make the Tab cheaper than an iPad.

“Tab feels solid in your hand but without the app store
behind it and with a smaller screen they can’t charge the same
amount as the iPad,” Greengart said.

Other operators planning to sell the Tab include AT&T Inc
(T.N: ), which also sells iPad; T-Mobile USA, a unit of Deutsche
Telekom (DTEGn.DE: ); and Sprint Nextel (S.N: ).

Samsung is letting each operator set their own pricing for
the Tab, so Verizon’s price for the tab could potentially be
undercut by its rivals, which have yet to announce pricing.
(Reporting by Sinead Carew; editing by Derek Caney)

UPDATE 1-Verizon prices Samsung Tab just under iPad