Dell to test netbook PC at a subsidized $99 price tag

Posted Jan 14th 2009 10:35AM by Brian White
Filed under: Products and Services, Launches, Dell (DELL)

Dell, Inc. (NASDAQ: DELL) is going to be testing new waters soon. Since trying to become a loss leader within consumer laptop PCs in the last year, the second-largest seller of PCs worldwide (for now) will be introducing a $99 netbook PC soon.

Netbooks are really just miniature laptops that feature lower power and lower performance specifications, but are ultimately portable. This new category of PCs was the hit of the last part of 2008, and many industry watchers consider the netbook category to be the hot growth prospect for PCs in 2009.

But a $99 offering? How is that possible? Well, it's based on the same principle as the cellular phone industry. Those who shell out $99 soon for a Dell Inspiron netbook PC will also be required to sign up for a two-year wireless data plan through AT&T, Inc. (NYSE: T) at a total cost of $350. So, in the end, they'll pay roughly $450 for that new Dell netbook.

Will this be the new pricing model for laptop and netbook PCs in order to spur sales during a recession? While consumer credit is still tight, that's a hard thought to manage, but these smallish netbook systems' functionality completely revolves around data access from the internet. The only ubiquitous wireless connections that exist just happen to come from the existing wireless cellular carriers in the U.S.

Maybe Dell has something here. At $350 for two years, that's under $30 a month for wireless data access anywhere AT&T has service. Is that a price you'd pay for the ultimate in wireless portability? Dell's betting it is.

Tags: ATT 3G, Att3g, Dell, Dell Inspiron, Dell Netbook, DellInspiron, DellNetbook

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Reader Comments (Page 1 of 1)

1-14-2009 @ 3:54PM

Nathaniel said...

Uh, $350 for 2 years is under $15 a month, significantly less than the $30 that I'm paying for my iPhone.

I'd probably get it at that price.

1-22-2009 @ 3:14PM

Cathi said...

so you are saying that people need AT&t for this service why when so many have gone the 3 option plan with Cablevision
I love my desk top but looking for a lap top to go anywhere with