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AOL's $299 PC

Posted by CowboyNeal on from the pablum-for-the-masses dept.

cmj writes "Internet.com reports 'Looking to attract households that still aren't online, AOL is offering new customers a $299 PC system if they sign a one-year $23.90 dial-up Internet service contract.' A click through AOL's ecommerce site reveals the the specs as 1.7 GHz Celeron with 256 MB RAM, 40 GB hard drive, 56K modem, 10/100ethernet card, 17" monitor and Lexmark printer. The PC is running Windows XP, and includes 'AOL Office Powered by Sun'. Also of note is the fact that the $299 appears to be financed at around 22%. The math ( (12*23.90)+299 ) seems to suggest that you can get a $699 computer for $585.80 plus any finance charges. Setting aside the question of whether this is a good deal or not, one has to wonder whether AOL is desperate for new customers and resorting to bribery, or just progressing to the next step of branding. With this action AOL controls everything from the OS to the Word Processor to the web sites their customers browse."

3 of 367 comments (clear)

  1. been there and done that by Frisky070802 · · Score: 5, Insightful
    This doesn't seem new or noteworthy. Such deals have been around for years. for intstance, googling appropriate terms took me to an article from 1999 about this sort of thing.

    Also, the numbers for how much this computer is worth don't factor the right things in. Anyone who'd go for this deal needs some sort of ISP to begin with, and the $23.90/month may be higher than other ISPs, but does give the customer something of value beyond the PC. On the other hand, is that really a $699 computer?

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    Mencken had it right. So glad that's old news.
  2. Re:So... by laird · · Score: 5, Insightful

    "$299 with a $20+ a month lock-in contract, so what they really mean is something closer to about $450."

    You're exaggerating by leaving out the fact that they're getting AOL access, which millions of people are paying $20+ a month for without getting a cheap PC. If you think that AOL service is worth nothing, then your math works, I suppose, but...

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    Enable 3D printed prosthetics!
  3. Re:$299 is financed at 21.7% APR by RackinFrackin · · Score: 5, Insightful

    That's a good idea, but I'd bet that there is in the contract saying that the buyer will pay a certain fee if the loan is payed off before a certain time. This is a common practice for auto loans -- if the finance company isn't guaranteed that they will make a certain amount, the loan isn't worth their time.