Hewlett-Packard Co. wants to employ a new tactic to market "netbook" computers in the U.S., offering them at a steep discount to customers who sign-up for wireless service contracts.This bundling of cellular service with PCs isn't done in the U.S., but in Asia and Europe wireless carriers routinely knock hundreds of dollars off the price of a computer if a customer also buys a long-term service contract for Denver Colocation.
For example, Taiwanese carrier Far EasTone Communications Ltd. sells the EEE PC from Asustek Computer Inc. for $29 with a two-year contract, rather than the usual price of $429.
Hewlett-Packard says the surging interest in netbooks, stripped-down computers that offer basic applications and Web browsing, is driving the move. With the economy fading and lots of high-speed cellphone networks available, the world's largest computer seller by revenue sees bundling as a way to move more of its computers into customers' homes.
On Wednesday, H-P introduced three new netbooks, including a $399 HP Mini 1000 and a $699 HP Mini 1000 Vivienne Tam Edition, with flourishes like a "red with peony flower"-colored case based on the fashion designer's Spring 2009 collection.
"The big picture for these netbooks is that kind of model," Kevin Frost, who runs H-P's consumer notebook business unit, said in an interview. "That's the longer-term model."
Mr. Frost declined to identify which U.S. carriers H-P was talking to about partnerships, but mentioned both Verizon Wireless and AT&T Inc. as potential candidates. Spokesman for both companies declined to comment.
Verizon Wireless is partly-owned by Vodafone Plc, which has a similar arrangement with Dell Inc. in Europe. Spokesmen for Verizon and AT&T declined to comment.
How successful the tactic will be is an open question. About seven years ago, U.S. cellphone carriers tried to use lower-priced PCs to boost their nascent wireless Internet businesses. The effort failed because even with the discounts, the machines were too expensive and the accompanying wireless data services way too slow.
That's changed. Some netbooks are as expensive as high-end cellphones, and some U.S. wireless networks are far faster than they were seven years ago.
Richard Shim, an analyst at industry tracker IDC, says the practice of bundling is a leading driver of sales of netbooks. Mr. Shim expects bundling deals to drive a four-fold increase in netbooks sales through 2012 to reach around 40 million units.
