Sprint Offers 99-Cent Netbook That Will Cost About $1,440

Netbooks have been in a race to offer the lowest price, and Sprint Nextel is currently the winner in the U.S. On Monday, the carrier announced it will offer a Compaq-branded HP Mini 110c-1040DX for 99 cents with a two-year data contract.

The Compaq netbook has a 1.6-GHz Atom processor, one gigabyte of memory, an EVDO 3G modem, a 10-inch screen, a 160GB hard drive, Windows XP, and Wi-Fi. Sold separately, the Compaq model costs about $390.

The near-giveaway machine, only available at selected Best Buy stores, is part of a growing trend among carriers to offer inexpensive netbooks as an inducement for a data plan. AT&T and Verizon Wireless offer comparable deals in the U.S., except their netbooks are $199 each.

About $1,440 For Two Years

The razor in this razor-blade strategy is, of course, the data plan. Sprint’s plan costs about $60 a month, or about $1,440 for two years.

Avi Greengart, an analyst with industry research firm Current Analysis, said Sprint’s price for the hardware is “certainly competitive” with AT&T and Verizon Wireless, “which are charging actual money” for their netbooks.

He said the processor, near-full-sized keyboard, and 10-inch screen of the Compaq netbook are “good enough for basic operations,” but it has one specification that is “way, way under” what’s needed — the three-cell battery.

The battery isn’t strong enough to get much work done, Greengart said, adding that there will also be a significant power drain from using the cellular network. You may not be tied to a hard-wired network connection or a Wi-Fi hot spot, he said, “but you will be tied to an AC outlet.”

Greengart pointed out that such near-zero prices for small computers have become common in Europe, and it’s “too early to tell” if the Sprint offering will drive competitors’ prices for netbooks down to virtually…