This is about selling computers like phones. Little to nothing upfront and monthly payments for amortization and service. Having a Chrome netbook/tablet delivered to you for monthly payments of $10/mo. to $20/mo. for a couple years is a game-changer. I wonder if they're Google branded?
Exactly, which is why I hope it doesn't take off. The subsidy model has been lousy for mobile phone buyers; manufacturers have greatly reduced incentives to provide support after the initial sale because you're locked in for the contract. If you want a computer on an installment plan, use a credit card.
PeoplePC did this about a decade ago, as well as one other service provider I think. Subsidizing inexpensive commodity commuters as part of an internet service package.
It'll be interesting to see what success Google has with their attempt, and what they do differently.
This headline is a bit confusing: Chrome OS is probably "less than free"; the rumor is that the devices will be subscription-based (aka rent-to-own). Next up: customers complaining about ETFs on their "free" netbooks.
It's not much money. $10/mo is $360 per machine if they replace the machines every three years. Plus $75 in search revenue ($25/yr) is $435. For $20/mo that total goes up to $795. That gets them up above the typical cost for a netbook, so they could start making money. But factor in maintenance costs, server overhead, etc... seems like pretty slim margins.
That said, if they can get large swaths of people using Google who previously couldn't afford a computer, they could be expanding their reach massively. So maybe it's worth it in that sense. To acquire virgin lifetime Google users.
Edit: I guess they're selling them with an upfront cost, I missed that. But it's an interesting calculation nonetheless.
