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HP considers service contracts for cheap netbooks

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On October 30, 2008, 12:37 PM EST

With the overly-crowded netbook market making it difficult to determine one vendor from another, innovation will be key to compete in a market currently dominated by Asustek. HP realizes this, and as such may be planning to try and lure people in with cheap hardware bundled with wireless contracts. Similar to how most cell phones are sold today, HP is toying with the idea of offering Netbooks at a steep discount if you sign up for wireless service, no doubt under a lengthy contract. The idea, as always, is to get recurring revenue on customers and deal with a small loss up front.

Earlier this week HP announced a planned expansion of their existing netbook line. It's likely if they want to bundle any services with netbooks for a discount on price, it would be using these newer models.

Would people go for it, though? Would you pen your name on one, two or even three years of some monthly service to get a discount on a netbook, even though they are already usually cheaper than laptops?

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