News

Orange set to invade UK PC market

Network operator to offer subsidised HP & Asus laptops with mobile broadband subscription direct to consumers and SMBs

Orange is set to deal a blow to PC retailers next month with the announcement that it is to begin offering its customers subsidised laptops in exchange for signing up to a 24 month contract for its mobile broadband service.

The network operator has signed deals with Asus and HP to offer what are essentially free laptops to its consumer and business customers. The firm had previously signalled its intentions to enter the PC market when chief executive Tom Alexander said he wanted the company to 'evolve' as reported by PC Retail but few other details had emerged since then.

Consumers will be able to get their hands on Asus' Eee PC 900 16G model by signing up to a £25-a-month contract, while business customers will be offered a range of HP laptops including the 6370s and 6730b series with tariffs ranging from £35 to £45 per month.

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Orange retail stores and orange.co.uk will be stocking Asus' Eee PC from August for consumers looking to take advantage of the deal, while the business contracts will be available from telesales.

Speaking about the move, devices director at Orange UK, Francois Mahieu said: "We're committed to delivering quality, service and innovation for customers, so we're really pleased to be launching a range of connected laptop offers with out first partners HP and Asus.

"Over time, we will be looking to expand our offering even further with more suppliers who are at the forefront of laptop technology, making it even easier for our customers to connect to the internet seamlessly, whether it is for work or play."

Tags: Asus, Channel, Eee Pc, Hp, Laptops, Mobile Broadband Subscriptions, Orange
1
 

“Oh great...”
Posted by: Brett Stocks - Jul 23, 9:19am

For God sake... how the hell are we suppose to compete with these deals.


2
 

“Re: Oh great...”
Posted by: Retailer X - Jul 23, 9:26am

I don't think that's the biggest problem. I think the bigger problem is that these sorts of deals are going to make customers scoff at having to pay for laptops at all. "But why is this one �600? I can get it free at Orange/Carphone/Best Buy/PC World!"


3
 

“Re: Re: Oh great...”
Posted by: Fred Hudson - Jul 23, 9:32am

I've already had people ask me why they can get laptops for free elsewhere. Difficult to make a sale after that penny has dropped.


4
 

“smashing great super”
Posted by: Pc Doc - Jul 23, 9:35am

If things aren't hard enough then come deals like this, but customers don't see its to sign up for 2 years at a higher rate per month and they are paying for the laptop monthly
with the size of screen fit for an etch a scetch


5
 

“Re: Re: Oh great...”
Posted by: steve - Jul 23, 9:38am

It really makes me wonder why I have bothered in the past 10 years to help sell these brands, with hardly any help or support from the manufacturers and poor marins , only for them to cut us out. Does this happen in any other industry , i,e, subscribe to some soap power brand for 1 year and get a free washing machine ?


6
 

“Re: Re: Re: Oh great...”
Posted by: Retailer X - Jul 23, 9:44am

Hehe, maybe if it was delivered to my house so I didn't run out and only realise I was out of washing powder when I'd ran out of clean clothes then I wouldn't mind...

But back to being serious. I would be a fair amount of money that the other operators are only a few months at most behind.

Still, I think the biggest kick in the balls would be if they start offering these deals to their authorised phone resellers but keep us out the loop.


7
 

“Re: Re: Re: Re: Oh great...”
Posted by: dave - Jul 23, 10:00am

cant wait to see the response when thety bring it in to be fixed and you quote them the normal rate for the job. what its not free but i didnt have to pay for the laptop. what wont orange fixit for free? still if you wait 11 months you can get another one for free? what do you in the mean time? perhaps saw part of your coffe table leg off and us it to make it level again.


8
 

“Re: Re: Re: Re: Re: Oh great...”
Posted by: jack - Jul 23, 10:20am

Some thing must give in for them to provide a free laptop. I bet when customer signs in and 3 months down the line the Laptop packs in, bring t to me and I fix it for a price.


9
 

“Re: Re: Re: Re: Re: Re: Oh great...”
Posted by: Retailer X - Jul 23, 10:23am

Saying that, I do wonder if we will see repairs... If a mobile breaks down under contract, it's repaired for free by the operator... If that's the case with these laptops then we could have problems.


10
 

“Re: Re: Re: Re: Re: Oh great...”
Posted by: Nik H - Jul 23, 10:24am

I don't see the problem? There are plenty of mobile broadband packages available at �10 per month, and plenty of UMPCs or Laptops at the �200-�250 mark. Get a finance company on board to spread the cost of the laptop over 24 months and you can create your own bundle at similar money (eg �25pm) ?? Then let their marketing open the consumer mind to the idea........There's always the opportunity then to upsell the customer to a better spec laptop / higher priced monthly package.


11
 

“Re: Re: Re: Re: Re: Re: Oh great...”
Posted by: William Linard - Jul 23, 10:53am

Hi all,

I work for CompTIA, and want to invite resellers to attend Breakaway Europe - the IT industries premier partnering and educational event. Learn how to drive more custom, learn about the future of the IT industry, and meet the biggest vendors in the UK. Please visit www.comptia.org/breakawayeurope, or email me on [email protected]. As the global trade association (22000 members), we are here to help smaller resellers drive business and compete with other companies like the one mentioned above! Our years membership is only �99...

Looking forward to any responses.


12
 

“Re: Re: Re: Re: Re: Re: Re: Oh great...”
Posted by: Brett Stocks - Jul 23, 1:27pm

@ Nik H,

That's definately an interested point. My only concern would be if the mobile networks would be okay with us adding margin to a service such as mobile broadband.

I'll look into it for sure.


13
 

“Re: Re: Re: Re: Re: Re: Re: Re: Oh great...”
Posted by: Nik H - Jul 23, 5:28pm

Brett,

I wouldn't even bother asking them about creating an actual bundle as I doubt it's in their interest to do so with the current deals they have set up.

Just 'advertise' and 'sell' it as a bundle but do it yourself. I'm sure the customer isn't going to be concerned when they have to sign 2 forms or have 2 direct debits coming out of their account each month (eg �10 + �15).


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