Deciding on a tablet
Shane is planning to purchase a new tablet device for surfing the internet and to use in school.
He needs to access the internet at all times and use up to \(2Mb\) of downloads per month.
He will also use the device to view videos which he downloads from the internet. On average he views five videos a month.
At home Shane plans to use the device to word process much of his homework. Therefore he will need a keyboard attachment to the device.
As he will be using the device at home and school a protective cover will be required.
He hopes the device will last him two years before he needs to replace it.
Device A
| Cost | Downloads | Videos | Extras |
| \(\pounds299\) | Up to \(500Mb\) per month included. \(5p\) for each extra \(Mb\) used. Free unlimited through Wi-Fi. | Access to videos free for first six months. Unlimited video access for \(\pounds6.99\) per month thereafter. | Keyboard \(£60\). Protective cover \(\pounds10\). |
| Cost | \(\pounds299\) |
|---|---|
| Downloads | Up to \(500Mb\) per month included. \(5p\) for each extra \(Mb\) used. Free unlimited through Wi-Fi. |
| Videos | Access to videos free for first six months. Unlimited video access for \(\pounds6.99\) per month thereafter. |
| Extras | Keyboard \(£60\). Protective cover \(\pounds10\). |
Device B
| Cost | Downloads | Videos | Extras |
| \(\pounds299\) | Up to \(500Mb\) per month included. \(3p\) per \(Mb\) of downloads per month. Free unlimited through Wi-Fi. | \(\pounds2\) per video | Keyboard included. Protective cover included. |
| Cost | \(\pounds299\) |
|---|---|
| Downloads | Up to \(500Mb\) per month included. \(3p\) per \(Mb\) of downloads per month. Free unlimited through Wi-Fi. |
| Videos | \(\pounds2\) per video |
| Extras | Keyboard included. Protective cover included. |
Device C
| Cost | Downloads | Videos | Extras |
| \(\pounds250\) | Up to \(500Mb\) per month included. \(5p\) for each extra \(Mb\) used. Free unlimited through Wi-Fi. | Access to videos free for first six months. Unlimited video access for \(\pounds9.99\) per month thereafter. | Keyboard \(\pounds75\). Protective cover \(\pounds20\). |
| Cost | \(\pounds250\) |
|---|---|
| Downloads | Up to \(500Mb\) per month included. \(5p\) for each extra \(Mb\) used. Free unlimited through Wi-Fi. |
| Videos | Access to videos free for first six months. Unlimited video access for \(\pounds9.99\) per month thereafter. |
| Extras | Keyboard \(\pounds75\). Protective cover \(\pounds20\). |
If Shane was to choose a device which offered the least cost over the two years which device would he choose?
Solution
Initially device C looks as if it is best value as it has the cheapest device cost.
However the cost to access videos and the cost of the extras required must be included when calculating best value.
The cost of downloads can be ignored as Shane will not exceed any of the cost implications of excess downloads.
Device A
Initial purchase price \(= \pounds299\)
Video costs – first six months free
\(18\,months \times \,\pounds6.99 = \pounds125.82\)
Extra costs - keyboard + protective cover \(-\,\pounds60 + \pounds10 = \pounds70\)
Total cost \( - \pounds299 + \pounds125.82 + \pounds70 = \pounds494.82\)
Device B
Initial purchase price \(\pounds299\)
Video costs – monthly cost \( 5 \times \pounds2 = \pounds10\)
\(24 \times \pounds10 = \pounds240\)
Extra costs - keyboard + protective cover - included
Total cost\( - \pounds299 + \pounds240 = \pounds539\)
Device C
Initial purchase price \(= \pounds250\)
Video costs – first six months free
\(18\;months \times \pounds9.99 = \pounds179.82\)
Extra costs - keyboard + protective cover\( - \pounds75 + \pounds20 = \pounds95\)
Total cost \(- \pounds250 + \pounds179.82 + \pounds95 = \pounds524.82\)
Total cost of device A offers the best value and Shane should choose this one.