Amazon Tech Support

  • Subscribe to our RSS feed.
  • Twitter
  • StumbleUpon
  • Reddit
  • Facebook
  • Digg

Monday, 6 October 2008

So much for "free laptop" subsidies....

Posted on 12:21 by Unknown
OK, I know this is just a lone example, but to me it's an interesting illustration of what's going on in the notebook / 3G marketplace at the moment.

I've had a look at the UK prices of Dell's new Inspiron Mini-9 netbook, together with mobile broadband. It's available through two different routes at the moment:
  • PC bought from Dell.com, used with an added 3G dongle and standalone mobile broadband subscription. Dell also offers a consumer finance package of its own, with 3 or 4 year terms.
  • PC and embedded module from Vodafone UK, available "free" but with a two-year contract.
I've tried to compare apples for apples as far as possible - ie both devices with Windows XP, both with 7.2M/2M HSDPA & HSUPA. ((The Dell.com one comes with a 16GB SSD hard drive rather than the Vodafone's rather tiny 8GB). This is what comes out:

PC purchased from Dell.com £299, or via a loan from Dell Finance @ £9.59 x 36 months

Standalone Vodafone "Modem Stick Pro" with 7.2Mbit/s HSDPA & 2Mbit/s HSUPA = "Free2 dongle + 24 months x £15 for 3GB / month. (H3G offers 5GB for £15 a month, but only with 2.8M HSDPA)

Vodafone-spec Mini 9 = "free" + £30 / month for 24 months with 3GB / month.

Over a two-year cycle, the options are fairly closely matched, if you consider the implicit charge for finance:

- PC from Dell, plus Vodafone dongle = £299 + £15 x 24 = total of £659

- PC from Vodafone with embedded module = £30 x 24 = total of £720

But taken over a typical laptop's 3 year life, assuming contracts are continued after 24 months at their current prices, the options are:

- PC from Dell, plus Vodafone dongle = £299 + £15 x 36 = total of £839

- PC from Dell on finance, plus Vodafone dongle = £915

- PC from Vodafone with embedded module = £1080

The other option that may appear in future is the ability to spec the Dell.com PC with a "vanilla" 3G module, then insert the SIM card of your choice. At present, that's not possible however.


Put simply, it looks like Vodafone's profit margin will be hugely boosted if customers keep paying full price for the PC and broadband after the two year period is up. I wonder if Dell (or some brave banks or retailers) will start to focus on offering 2-year standalone finance deals on PCs.

Now this is a very UK-specific offer, and I know that the "free laptop" hysteria hasn't spread that far yet. But one thing seems clear at the moment - from a consumer point of view, it doesn't look like a particular bargain. But then, that's never seemed to matter in the "free" mobile phone market....
Email ThisBlogThis!Share to XShare to FacebookShare to Pinterest
Posted in | No comments
Newer Post Older Post Home
View mobile version

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Popular Posts

  • Quick musing on Cloud Computing
    I just heard the phrase "Everything as a Service" during a presentation on Cloud, SaaS and other forms of managed service offering...
  • Apple, embedded SIMs, NFC and mobile payments - some speculation
    I wonder if I've just managed to join up the dots on something rather important: - Recent reports suggest that Apple is intending to use...
  • New Cisco VNI traffic report out
    One of the broadband industry's "bibles" has been published in a 2010 edition . Cisco's "Visual Networking Index...
  • Is the MID a market?
    MIDs (Mobile Internet Devices) are being pushed by some notebook OEMs and silicon suppliers as the next big convergent handheld category. I...
  • "You can't use my eyeballs for free"
    Let's look forward 10 years. We've all got augmented reality browsers on our handsets, or perhaps our 4G-connected sunglasses. They ...
  • Mobile traffic management - the Inter-technology war begins
    I've been following the proliferation of mobile broadband traffic management technologies for some considerable time now, having publish...
  • Pre-MWC notes for analyst relations staff
    OK, it's the time of the year when I get bombarded by emails and phone calls from a million people inviting me to briefings and similar ...
  • Mobile operators' future voice strategies decoded
    Apologies in advance, but this blog post is deliberately a bit of a tease. I'm not going to spell out the answer here, as it's too v...
  • Hosted mobile services in the recession - Caveat Emptor
    I used to work as an equity analyst at an investment bank back in 2000-2001. I remember an unending stream of first generation Application S...
  • Challenges in measuring offload volumes
    I suspect we're going to get bombarded with statistics in the next year, along the lines of "Operator X deployed Vendor Y's off...

Blog Archive

  • ►  2013 (31)
    • ►  October (2)
    • ►  September (3)
    • ►  August (1)
    • ►  July (2)
    • ►  June (6)
    • ►  May (5)
    • ►  April (1)
    • ►  March (3)
    • ►  February (3)
    • ►  January (5)
  • ►  2012 (46)
    • ►  December (5)
    • ►  November (4)
    • ►  October (3)
    • ►  September (2)
    • ►  August (4)
    • ►  July (3)
    • ►  June (1)
    • ►  May (6)
    • ►  April (4)
    • ►  March (1)
    • ►  February (9)
    • ►  January (4)
  • ►  2011 (73)
    • ►  December (4)
    • ►  November (10)
    • ►  October (8)
    • ►  September (6)
    • ►  August (3)
    • ►  July (5)
    • ►  June (7)
    • ►  May (9)
    • ►  April (4)
    • ►  March (7)
    • ►  February (6)
    • ►  January (4)
  • ►  2010 (130)
    • ►  December (4)
    • ►  November (10)
    • ►  October (10)
    • ►  September (6)
    • ►  August (9)
    • ►  July (7)
    • ►  June (19)
    • ►  May (19)
    • ►  April (11)
    • ►  March (18)
    • ►  February (7)
    • ►  January (10)
  • ►  2009 (126)
    • ►  December (4)
    • ►  November (14)
    • ►  October (9)
    • ►  September (8)
    • ►  August (9)
    • ►  July (10)
    • ►  June (21)
    • ►  May (14)
    • ►  April (2)
    • ►  March (11)
    • ►  February (15)
    • ►  January (9)
  • ▼  2008 (94)
    • ►  December (24)
    • ►  November (26)
    • ▼  October (25)
      • Embedded-3G notebooks - a quick update
      • Hosted mobile services in the recession - Caveat E...
      • VoIPo3G on the iPhone
      • Truphone - wVoIP on BlackBerry
      • Massmarket PC-based VoIPo3G
      • The last nail in the coffin for the idea of massma...
      • fring - Mobile VoIP partnership with Austrian mobi...
      • Symbian - quick thoughts on the Foundation, Samsun...
      • Free Netbooks in India - a big deal?
      • Intel+Ericsson - catalysing the MID market with in...
      • UK plan to register prepay SIMs: sensible law enfo...
      • INQ + BREW = Cheap Internet-phone?
      • WiMAX vs. LTE vs Global Economy
      • 3G load-balancing, driven by the end user. WiFi as...
      • Dongle-docks - sharing 3G via a WiFi router (or a ...
      • Question: what happens if a PC has both WiMAX and ...
      • Market forecasting in the face of economic uncerta...
      • Upcoming event: Telco 2.0 in London, Nov 4-5
      • Just how late is Nokia with HSUPA devices?
      • Avoiding Overhyped Technologies: The new Mobile Ma...
      • Key events: Open Mobile Summit, eComm 2009 and UK ...
      • Femtos vs. repeaters?
      • So much for "free laptop" subsidies....
      • Software as a service? The difference between serv...
      • If you're getting bored of my posts on embedded-3G
    • ►  September (19)
Powered by Blogger.

About Me

Unknown
View my complete profile