Here Comes the Asus 'Freee PC'

Mike Elgan of Internet News has an interesting insight on how Asus has redefined the subnotebook category with its Eee PC. Its trendsetting product hit the mark in terms of smallness, light weight, and most importantly, affordability.

But as the number of mini-me's begin to crowd the market, he expect it to become too price competitive that the pricing model will eventually switch to something similar to subsidized mobile phone offers (sign up for a service and get a heavily-subsidized or even free unit). As he noted, such offers are already being offered. In the UK, PowerupMobile.com is giving an Eee PC with a two-year contract while the Royal Bank of Canada has switched from giving away toasters to giving away Eee PCs for new accounts.

With production costs expected to make subnotebooks even more affordable, he predicts such units will be given away in the U.S. starting middle of next year with contracts for mobile broadband services, online storage and synchronization services, software, and even non-technology products and services such as car sales.

As he aptly put it - it's a wonderful time to be a nerdy cheapskate. :)

Source article here.