All of our current customers wanted to try the experience without actually having to purchase and own a new expensive device. We really wanted to lower the barrier for anyone who wanted to give us a chance.
We also handle all shipping/return costs -- we're trying to minimize any burden on the customers.
What happens when an employee has one stolen? or coffee spilled on it?
How many free tablets can I get for $25/mo? What do you do when you realize someone has spilled coffee on 3 tablets, and now their credit card isn't rebilling and they aren't responding to email?
You can dream up all of these scenarios. But if you have a healthy business then a small number of people scamming you for Galaxy Tab's doesn't kill it.
The margins are pretty fat ($25/mo for hardware that costs $200) and unless they have a particular knack for finding petty thieves I expect that they will lose fewer than 1% of their tablets to fraud.
We also handle all shipping/return costs -- we're trying to minimize any burden on the customers.