Business Week
PC makers and telcos are pairing up to offer discounted devices with wireless data plans, but success could come at the expense of feature-laden phones
Stripped-down computers known as netbooks have been taking a bite out of laptop sales for the better part of a year. Now computer makers are trying to capitalize on netbooks' popularity by pushing them into a new market—the one occupied by smartphones like Apple's iPhone and Palm's upcoming Pre.
The strategy has yielded some attractive deals for consumers, who can score big discounts on Dell (DELL) and Acer netbooks that are paired with wireless data plans from AT&T (T). For PC makers, chopping hundreds of dollars off their prices and emphasizing netbooks' always-connected nature broadens the little products' appeal. Ordinarily, these machines that sport small screens and keyboards and less powerful processors than full-sized notebooks can cost $300 or $400.
Pairing netbooks with wireless plans is also a way to differentiate the machines, designed for reading e-mail and surfing the Web, from full-sized laptops that can cost three times as much. "For many people, the notion that you're not connected is almost foreign," says Michael Tatelman, a vice-president of global sales and marketing at Dell. "I don't think you'll see us exiting the model any time soon." In fact, the PC maker is exploring the possibility of selling printers and monitors bundled with 3G service, for quick transfers of photos from a camera or Web site, for example. "We're looking at all those things," says Tatelman.
Posts
