Warning: Cheap Netbooks

khess 0 Tallied Votes 286 Views Share

The cheap Netbooks you see advertised at discount stores might not turn out to be so cheap after all. If you see a Netbook advertised at $100 or less, beware--it will end up costing you many times the regular price of $275-$400 USD. As I predicted in my post, "Branded Netbooks," vendors (Phone companies and ISPs) are selling subsidized Netbooks with service subscriptions.

Don't allow yourself to fall into these traps.

Netbooks advertised for $100 are associated with some costly fine print. For example, I saw one in my local Sunday paper advertisement section for $100*. Do you see that asterisk after the price? That asterisk puts the 'risk' in the price.

Reading the asterisked fine print gave me the true price of this Netbook and a little surprise after some investigation.

To purchase the Netbook at the promotional price of $100, you must also sign a 2-year contract with the company for Internet service to the tune of $60+USD per month. I'll do the math for you.
That's $1,440 USD for the service plus the $100 Netbook "purchase" for a grand total of $1,540 USD for a $300-ish Netbook.

Ok, so you need Internet service to go with that Netbook? Buy a Netbook and shop around for service. $60 per month (minimum) is pretty pricey if you ask me for service that you can get for less than half that. If you need random connectivity, go to a place where they offer free WiFi as a draw.
Many restaurants, coffee shops, bookstores, hotels offer free WiFi and all Netbooks come WiFi ready. To find these hotspots, go to sites such as , Free-Hotspot, or .

Lessons learned: Always read the fine print for any great "deal" you might find, calculate the amount of money you're going to spend over the next 2 or 3 years while you're waiting for that contract to run out and it's almost always less expensive to find your own service rather than deal with the restrictions of a bundled package. Don't waste your money.

Oh, you want to know about the surprise that I mentioned earlier? It's rumored that if you don't pay your contract to the company for your cheap Netbook, they disable it. That's right. You'll have a very cute paperweight until you cough up the cash.

Surprise!

Dani AI

Generated

Good, practical warning from . The asterisk in a "too-good-to-be-true" netbook ad often hides a multi-year service commitment or device restrictions that erase the apparent savings. The reported "device disable" should be treated as a material term: demand written confirmation of what happens to the hardware if service is cancelled or payments stop.

A simple pre-purchase checklist that captures the real cost and risk:

  • Compute true cost using this formula: Total cost = Upfront price + (Monthly fee × Contract months) + Activation + Taxes + Early-termination penalty (if applicable).
  • Ask the seller to confirm in writing whether the netbook is carrier-locked, contains an embedded/locked modem, or runs any subscription-required software/activation.
  • Verify ownership: is the device sold outright or leased for the contract term? Get the exact early-termination fee schedule and return policy in writing.
  • Confirm data caps, throttling, and any mandatory add-ons or insurance that increase monthly spend.

Compare the bundle total to buying an unlocked device and pairing it with a month-to-month plan, an MVNO, a mobile hotspot, or phone tethering; run the math for the contract length to find the break-even point. For casual or occasional connectivity, free hotspots can be economical—but treat public WiFi as untrusted: prefer HTTPS or a VPN for sensitive activity.

Keep copies of the advertisement and the full contract before signing. If the ad omits material terms or the salesperson refuses written answers, treat the offer as high risk. The alert from highlights the exact consumer-safety mindset needed when hardware is used as a loss leader.

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