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Why Netbooks Will Soon Cost $99

CWmike sends along a ComputerWorld piece which predicts that "netbooks like the Asus Eee PC, the Dell Mini 9 and the HP 2133 Mini-Note will soon cost as little as $99. The catch? You'll need to commit to a two-year mobile broadband contract. The low cost will come courtesy of a subsidy identical to the one you already get with your cell phone. It's likely that HP is working with AT&T (they're reported to be talking), which announced a major strategic shift a couple of weeks ago that should result in AT&T stores selling nonphone gadgets that can take advantage of mobile broadband, including netbooks. What's more interesting is that low income and cheapskate buyers are starting to use iPhones as replacements or substitutes for netbook, notebook and even desktop PCs. The author's take: A very large number of people are increasingly looking to buy a single device — or, at least, subscribe to a single wireless account — for all their computing and communications needs, and at the lowest possible price."

20 of 221 comments (clear)

  1. "cheapskate buyers"? by Laebshade · · Score: 5, Insightful

    I'd hardly call using an iPhone as a replacement or substitute for a net/note/lap/dog-book or desktop being a "cheapskate buyer".

    1. Re:"cheapskate buyers"? by Coeurderoy · · Score: 4, Insightful

      Actually calling them incompetent buyer would be more accurate, but the parent article is still quite right.
      Most people are impulse buyer and will pay anything if the "first byte" is not too painful.
      You will see things like:
      59$ down payment 19.9 for the three first month (and in small 29.9 for the super premium student value subscription or 59.9 for the standard and 99.9 for the business (the only one that is actually of any use to you) subscription...

    2. Re:"cheapskate buyers"? by AliasMarlowe · · Score: 3, Funny

      From the OP: ... that low income and cheapskate buyers are starting to use iPhones as replacements or substitutes for netbook, ....

      An iPhone costs more than some existing netbooks, so these must be affluent imbeciles or ardent fashionistas (both groups being significant subsets of the iPhone demographic), rather than "cheapskates" or "low income". Of course, these are exactly the right target market for selling a netbook with a locked-in WLAN communication contract, preferably at an eye-watering overall profit level.

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      Those who can make you believe absurdities can make you commit atrocities. - Voltaire
    3. Re:"cheapskate buyers"? by hairyfeet · · Score: 4, Informative

      Ummm...considering that Asus has done announced they will have a EEE priced at $200 next year,why on earth would anyone get screwed with such a long term contract to save $100? Personally I'll wait and see what the $200 Asus looks like.

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      ACs don't waste your time replying, your posts are never seen by me.
    4. Re:"cheapskate buyers"? by AigariusDebian · · Score: 3, Informative

      Talk about outdated thinking, LMT in Latvia is offering ASUS EEEPC 1000 with a built-in 3G reciever for $2 + 2 year data contract. That offer is there for at least half a year, could be close to a full year now.

  2. Better to just buy it outright. by CastrTroy · · Score: 3, Insightful

    It would be better just to buy it outright. With free wireless broadband being so easy to get, and the cost of these netbooks dropping, you are probably just better off buying it outright, and not being tied into a provider.

    --

    Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    1. Re:Better to just buy it outright. by mrchaotica · · Score: 4, Informative

      With free wireless broadband being so easy to get...

      Wha...? You do realize that "wireless broadband" isn't the same thing as wi-fi, right?

      --

      "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  3. Welcome to the future - UK by Anonymous Coward · · Score: 5, Informative

    In the UK (which is generally, but not always prefixed with the words "rip off") netbooks/cheap laptops have been available for free as part of contract mobile deals for quite a few months now via major retailers such as the Carphone Warehouse..

  4. Ray Kurzweil by suburbanmediocrity · · Score: 5, Funny
    I believe predicted this many years ago.

    Of course I think that he also predicted that we would eventually also be marrying them at some point. Now I think we're just living together.

  5. One device per contract is a deal-killer by geophile · · Score: 5, Interesting

    BInding a single device to a 2-year contract is nuts. Especially a device as limited as a cell phone or netbook.

    The iphone, for example, is very cool, but I'm just not interested at $70/month. Yet I pay more than that for my tv/phone/internet connection at home. I'm OK with that because at home I have flexibility -- I can attach as many phones and computers as I want.

    I'm sticking with my pay-as-you-go, featureless cell phone until there's an expensive contract that gives me a lot more flexibility.

  6. Ahh convergence by LaughingCoder · · Score: 5, Interesting

    I am always fascinated by the twists and turns of the "convergence" of all electronic devices into "the one device that rules them all". For awhile it was looking like the video game console might be the winner. And TIVO was hot for awhile, as were set-top boxes. The PC made a run, but collapsed under their own complexity - the difficulty of trying to be all things. Those all of course both suffered from a lack of portability (notebooks were an attempt to address this) ... enter the PSP. Then smartphones popped on the scene and are probably the current best bet. But now netbooks appear, and there are some compelling reasons why they could displace cell phones as the one device everyone owns and carries. I suppose their two big problems are battery life and size. The smartphones' problems are screen size and interface (keyboard) size. Perhaps when (if) voice recognition finally works and the display-in-glasses becomes viable cell phones could overcome their limitations?

    As a self-professed gadget guy I can say that I carry 3 devices with me always: cell phone, pocket PC and thumbdrive. Sometimes I also carry a Nano if I will be listening to music for a prolonged period (battery issues with the Pocket PC and the cell phone). Here in the states, the smartphones with touchscreens and web browsers and available 3rd party applications require you to sign up for a data contract, the cost of which I cannot justify. The pocket PC has a decent camera, a good music player, a host of games and applications, WiFi, a good size screen ... but it lacks a decent input device, battery life and cell phone functionality.

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    The more you regulate a company, the worse its products become.
  7. Frankly by Colin+Smith · · Score: 4, Insightful

    I don't understand why I can't simply "dock" my 300MHz 64Mb RAM, 2Gb storage mobile phone into a cradle and use a normal keyboard, mouse and screen to edit documents, write emails, browse web etc.

    Psion had fully featured word processors, spreadsheets and cardfile databases running on 16bit hardware a decade ago, the problem isn't the OS or hardware... All the current crop of smartphones are up to the job.
     

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    Deleted
    1. Re:Frankly by Tryfen · · Score: 5, Informative

      You can.

      Nokia's N95 8GB comes with a TV-out cable in the box. Hook it up to a 42 inch plasma screen, pair a bluetooth keyboard with the phone and you're all set.

      You can even play Quake on it.

      Use the built in Webkit browser or install Opera.

      It has full desktop-style office apps available. Out of the box it can read .doc and .ppt and a few others.

      It has a media streamer (realplayer) so you can watch TV, listen to Internet radio, podcasts etc.

      There's a mobile version of DivX which will play your "backups".

      Want to go insane with yourbandwidth? Try the Bit Torrent client that's available - SymTorrent. Mind you, you're better off using the built in WiFi for that.

      Better keep a charger nearby!

      --
      If a square is really a rhombus, why aren't all triangles purple?
  8. If only by kurtis25 · · Score: 4, Insightful

    If mobile broadband were fast enough to watch TV online, if the bandwidth caps were high enough to connect to my firm's remote server 8 hours a day and watch 5 hours of TV shows online a week and it was less than the $30 a month I pay for internet now I would sign up in a heartbeat.

  9. Already happening in Asia by Anonymous Coward · · Score: 3, Informative

    Several networks are already offering this kind of deal here in Taiwan. Some of them even giving them away for free if you take the unlimited 3G network plan combined with a 2 year contract. The unlimited 3G plan costs about 22USD at the current exchange rate which is pretty decent since you get a netbook worth close to 400 bucks retail price (they give away Asus EEE PC 901 and 1000H and such and not the cheap surf model)

    Personally I think that it is a good deal.

  10. Predictions by markdavis · · Score: 4, Insightful

    1) MS-Windows only
    2) Overpriced monthly service
    3) Hardware hard-wired for only a single carrier

    How wonderful, I can hardly wait.

    Why don't we do this with cars next- "Get this wonderful car for only $8,000; just sign this $800 per month, 3 year contract for Exxon gas- and oh, by the way, it will only run on Exxon gas, and you are only allowed 20 gallons per month".

  11. People with low to intermediate computing needs... by walter_f · · Score: 4, Insightful

    ... will indeed be able to get things done with a well-chosen netbook. The more intelligent among them (be their income low or relatively high) will prefer to buy their netbooks the traditional way, not as a part of a two-year service contract.

    On the other hand, whoever expects to satisfy their computing needs with an iPhone or a similar device will end up dissatisfied, and doubly so when on a service contract that has to be paid for monthly from a low income.

  12. why would i want two contracts? by Carrot007 · · Score: 4, Interesting

    I cannot understand why anyone would want to pay the mobile companies twice.

    I currently can use my mobile when appropriate but when I need something more I use bletooth to connect my eee to my phone to use it's connection. Yes this does mean paying more on my phone contract but not as much as 2 contracts would be from what I have seen on these plans already. (I'm in the UK they have been selling like this for quite while now)

    Only thing that probably sucks is when it comes time to renew my contract and get a nice shiny new phone there will be no bolt on options and I will be forced to have two contracts to make the mobile companies more money.

    This is not a good thing, the only people who would needa mobile broadband only option are people without a mobile. For the rest it should just be bluetooth or whatever to the mobile phone. Yes I realise the operators in the US try to discourage you from this or ban it on most plans, but that is just bollocks, if i can use the interent on my phone whats the difference if I can connect another device? NOTHING, that's what, it just does not help them rip you off.

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    +----------------- | What is the question!
  13. The Failed Business Models of the 1990s by tyme · · Score: 3, Insightful

    There is a big difference between the subscription plan you buy with your mobile phone and subscription plans like this: with the mobile phone, the thing the customer is actually interested in isn't the physical phone, but the ability to make phone calls on the network, so paying the subscription fee makes sense for the consumer; the cost of the phone, which is usually indexed to the customer's desire for features/prestige/etc. is incidental to the actual thing being sold: access to the wireless network. With all these plans to sell full-fledged computers by tacking their price onto some other service, the problem is that the other service is usually incidental to customer's actual interest: the computer. If the customer doesn't really want the thing you are trying to sell, then you will have a tough time keeping them in the subscription plan.

    This was tried by a number of companies in the late nineties, and all failed miserably. Apparently there are a bunch of young MBAs out there who didn't learn the lesson of the iOpener.

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    just a ghost in the machine.
  14. So, $59/month x 24 plus $100 = $1500 by gelfling · · Score: 3, Insightful

    Seems like not so much a bargain. But that's just me.