AOL has become the second ISP in two days to offer a free laptop with a broadband subscription.
Starting in September, customers who buy a two-year contract for AOL's broadband service through the Carphone Warehouse will get a coupon for a free base-model Inspiron notebook from Dell. AOL broadband costs £19.99 per month.
A similar free laptop deal was unveiled yesterday by Orange UK, which is already offering a 'free' £300 laptop to those who sign up for a two-year broadband subscription at PC World's retail outlets. The moves could prove attractive to those who have never owned a computer or bought a broadband service and therefore could grow subscriber numbers, said Jonathan Coham, an analyst at Ovum PLC. Those customers tend to be older and are more loyal, he said.
But it won't come cheap for the operators. "These are very low-margin customers for the time being," Coham said. "Both Orange and Carphone Warehouse are going to make a slim amount of money on top of what they are getting from the broadband subscriber."
The Dell laptop comes with Microsoft's Windows Vista Home Basic OS, 1GB of RAM, an 80GB hard drive, an Intel Celeron processor and Wi-Fi. The laptop can be upgraded for a fee. Customers also get a wireless router, but have to pay a £14.99 laptop delivery fee.
By contrast, Orange's free laptop offers fewer features than Dell's. It's made by Ei Systems, and comes with Windows XP Home, 256MB of RAM and a 40GB hard drive but doesn't have Wi-Fi. Users can upgrade to a better laptop for a fee. Orange's broadband service, however, is cheaper, at £14.99 per month for a 24-month contract, excluding an initial discount for the first three months.
A Dell spokeswoman said the deal with Carphone Warehouse is an extension of the company's retail strategy, and there will be more retail deals around the world coming soon.
Dell, which traditionally sold computers online, by phone or through catalogues, sees the retail market as a way to stop its declining market share, Coham said. Dell could potentially try to entice the novice computer users who take the free laptop into buying technical support packages.
"I think if Dell is smart they will see this as an opportunity to upsell these basic PC customers with additional accessories, software and support," Coham said.
Comments
AZ said: Thats rubbish go to Currys they gave me 1999month for the unlimited broadband and a good laptop Much better than PC WORLD
Usup supriadi said: I went into PC World to find out more about Orange deal They referred me to Orange - Orange then tried to refer me back to PC World Eventually I managed to ascertain that you can only sign up to 1499 contract with no option of upgrading to the better 1999 Orange Broadband contract So basically they would rather not have me as a customer than let me take out the 1999 broadband package instead of the 1499 package which is no good to me Guess I am staying with my current provider then
Craig from Stoke said: I am just adding that I did go for the Currys deal with orange broadband giving me 300 off a PC I ordered a Packard Bell laptop Currys price 52900 Later that day both Currys and PC World launched the Sony Viao N38 laptop at 49900 RRP 65000 So I wanted this laptop I have since been to Currys and they have allowed me to exchange the laptop I am awaiting my broadband subscription from Orange and once received I will be able to purchase my new Sony Viao laptop for 19900 excellent deal It is a shame AOL could not do anything to keep me as a customer Hope many of you took the opportunity like I did If not AOL and Carphone Warehouse are still offering the Dell laptop but the specs are not that good Good Luck to everyone I hope my messages have helped others Craig
Anthony Nystrom said: Well you can win one herewwwnext2friendscomNo spam no strings giveaway every 30 days New Dell
samantha said: i love this and it is the best that i could get x
Steve Wilton said: Hey Id just like to say I went from AOL to BT Broadband and then on Orange in May of this year I had nothing but problems with BT and Sky couldnt even get their Modem workingOrange for all their negative feedback have been excellent and Ive never had a problem with them
k_l7x said: PC World do allow you to upgrade to the Orange 20 package which includes loads of stuff including8MG DownloadUnlimited downloads fair use policyFree calls to 01 and 02 numbersFree calls to lots of countriesWireless up to 6 computersThese where the main highlights pointed out to me by PC world Ive had a quick read on the Orange website and it seems that you can do quite a bit with the Orange Livebox
Craig said: The Orange deal with Currys looks good on paper 1999 for a two year contract with the first 3 months half price For that you get unlimited 8 meg broadband and free calls to landlines and Orange mobiles I am currently paying AOL 30 a month and my are can only get a maximum speed of 55 megs My thinking is if I sign up to Orange and if I gan get around the 200 for the laptop on Ebay I should get approx 15 months of my 2 year contract free as opposed what I am paying now 360 a year My only concern is that the Orange customer service has a reputation for being extremley poor in that they are unable to handle the volume of customers they have already If this volume increses due to their offer I hope they are set up to handle it I personally think that the time is not too far off where customers will be switching ISPs regularly the same way mobile phone contracts are
Craig from Stoke said: More info on AOL dealI have telephoned DELL and they know nothing of this deal or van offer an upgrade if I get the free laptop at a cost and Carphone Warehouse cannot help You do not have to take the free laptop with PC World or Currys you can have 300 off a decent laptop I am looking at a 499 high spec laptop with Currys for 199 Looks a better deal
Craig from Stoke said: I have contacted AOL as my Maccode was not on my email They gave it me over the telephone She asked why I was leaving and I explained that I have been with AOL for two years on AOL Gold at 2499 per mth I found our by way of a forum that AOL Gold had been discontinued when Carphone Warehouse took them over last year and I was getting speeds of AOL Silver offered at 1499 so they were ripping me off Carphone Warehouse or AOL have not let their customers know They will not give me the difference in money back either They are offering me the laptop deal but the laptop is not good specs and I want to upgrade but they cannot guarantee this or a laptop even as they only have 200000 and the deal is not confirmed to you until Sept when the Orange offer is finished
SVM said: I am an existing Orange customer and tried to take advantage of the PC World offer but Orange told me it takes 30 days to cancel the contract and the PC world offer only runs for 20 days We thought about cancelling it and putting a new contract in my husbands name but this doesnt work unless you have two BT lines The contract is attached to you BT number so you cant take out a new contract with the same number Orange also told me its a rubbish laptop that hasnt been selling so the manufacturers are trying to shift it another way Great comments from a company attached to the deal Also discovered Orange have been ripping me off for over a year charging me 1799month for a package that was replaced with a new one at 1299month Ill definately be looking into the AOLCarphone Warehouse deal Orange dont deserve loyalty
SVM said: I am an existing Orange customer and tried to take advantage of the PC World offer but Orange told me it takes 30 days to cancel the contract and the PC world offer only runs for 20 days We thought about cancelling it and putting a new contract in my husbands name but this doesnt work unless you have two BT lines The contract is attached to you BT number so you cant take out a new contract with the same number Orange also told me its a rubbish laptop that hasnt been selling so the manufacturers are trying to shift it another way Great comments from a company attached to the deal Also discovered Orange have been ripping me off for over a year charging me 1799month for a package that was replaced with a new one at 1299month Ill definately be looking into the AOLCarphone Warehouse deal Orange dont deserve loyalty
Aaron said: hi this is just a tip to those who have been with aol for a few years and want the free laptop All you have to do is say to aol you wish to cancel your subscription and in a desperate attempt to stop you switching they offer you the free laptop hwever you still have to upgrade to 1999 a month its that simple
Aaron said: hi this is just a tip to those who have been with aol for a few years and want the free laptop All you have to do is say to aol you wish to cancel your subscription and in a desperate attempt to stop you switching they offer you the free laptop hwever you still have to upgrade to 1999 a month its that simple
k said: Craig - Ofcom do nothing to help they can only advise My advice to you is call them everyday and if that does not work tell them you are reporting your case to BBCS watchdog After 6 days I told them I was in contact Hey Presto Mac code day after
Craig from Stoke said: By the way I have contacted both PC World and Currys Both are limited offers PC World is due to finish on 15 August 2007 and you must have your letter from Orange and purchase the PC before this date Currys is set to go on for a while Orange and AOL deals are for a min of 24 mths contact however you are not guaranteed to get a laptop with AOL and you will then be stuck in your contractDoes anyone know the full specifications from the AOL deal I have looked at the processor and it is basic and they are onyl offering you Vista Home Basic where you can have a dual core and Vista Home Premium paying extra with Currys or PC World
Craig from Stoke said: Some more info for youThe problem with the AOL deal on the Carphone Warehouse site they do not tell you much about the laptop and if you could upgrade and for how much It will probably work out the same as PC World or Currys I have telephoned AOL and advised them that laptop is not an high specification for me and they did not offer me an upgrade and stated they would send my MACCODE within 48 hrs I am 24hrs in and I expect my MACCODE to be in my email box tomorrow if not Im back on the phone and will threaten them that they are breaching their terms and I will get in touch with Offcom I have heard a lot of reports that it is difficult to get your MACCODE from AOL If this is the case does anybody know if it is wise to cancel the subscription and get BT to clear the line as I would hate to miss out on one of these laptop deals and if I do AOL will be paying for me to buy a new laptop
Craig from Stoke said: Me again I have been contemplating which service to go with I am a AOL Broadband customer and also paying 2499 I spoke to AOL about leaving and they offered me the laptop deal stating it is a laptop worth over 500 However I have done the maths and it is not its worth about 300 the same as what PC world are offering I therefore would prefer to pay Currys and have 300 knocked off a laptop giving me what specifications I need having the 1999 deal with Orange plus free wireless router which is the same as AOL
Craig from Stoke said: Currys are offering a deal similar to PC World with 300 off any laptop and you can get the 1999 Orange Broadband package aswell as the 1499 deal
k said: Well if you are planning on switching from AOL to Orange - a hint of advice Whilst you are on the phone to AOL Trying to get your mac code do not even hint you are going to orange BB for the laptop offer I made that mistake and AOL dug their heels in Its taken me 7 days and an awful lot of agro to get it out of them