Consider hardware, operating systems and usability when shopping

Netbooks are small, portable and inexpensive computing devices that are typically suitable for surfing the Internet or composing basic documents. Most netbooks come with a 10.1-inch display, although it is possible to find some with larger 11- or 12-inch screens. While some netbooks are nearly as competent as more expensive, full-size laptops, many have fairly limited capabilities.

Depending on their price points and processors, netbooks have different capabilities. More advanced models feature the AMD E-300, AMD E-350 or AMD E-450 Fusion dual core chipsets and can do almost anything an entry-level laptop can -- including picture manipulation, high-definition video and basic 3D gaming -- though sometimes not quite as well. Some netbooks in this class use a 1 GHz AMD Fusion Dual Core C50 processor instead; though a step down in power from the company's E-series processors, that AMD C-series processor outperforms other netbook processors, including those in the Intel Atom family. The big advance in AMD's Fusion technology is its superior graphics capabilities, and that is readily apparent in reviews of netbooks that use these processors.

In the midrange are notebooks with dual-core Intel N550 Atom processors. These processors make multitasking possible, but they don't offer a huge boost in overall performance over single-core Atom CPUs. Some experts do see a slight speed improvement, but nothing that the average user would notice on a day-to-day basis.

The cheapest netbooks still use a single-core Intel Atom processor. Combined with minimal hardware (1 GB of RAM, small hard drives, etc., that leads to pretty paltry performance. However, if all you want to do is read email, surf the Net and compose simple documents, it might be all that you need.

Experts recommend keeping the following factors in mind when shopping for a netbook: 

  • Battery size is crucial. Smaller batteries might make the unit lighter and easier to carry, but larger batteries allow for longer runtime when you're away from an electrical outlet. Six-cell batteries are most common and are recommended, while cheaper netbooks usually have three- or four-cell batteries, which don't last as long between charges.
  • Different operating systems offer different capabilities. Most higher-end netbooks now run full versions of Windows 7, while midrange models frequently use Windows 7 Starter Edition. Some netbooks offer Linux as an option, while others rely on Google's ChromeOS. The alternative operating systems are simple and streamlined, and the best implementations are easy to use. However, many familiar games and other programs won't run under them.
  • Look at onboard storage and RAM. Products with limited onboard storage space may require peripheral devices such as SD cards or a subscription (free or paid) to an online file storage service. Netbooks with smaller amounts of RAM could run more sluggishly than those with more memory, especially when running more than one program at a time. Most netbooks come with at least 1 GB, but you can upgrade to 2 or even up to 8 GB on some models.
  • Check out displays and keyboards before buying. While smaller netbooks tend to be more portable, they're not always as functional. Some users find that tiny keyboards and screens can cause too much strain and frustration to make up for the decrease in price and bulk.
  • Glossy displays are common. Just as on full-size laptops, glossy displays are becoming ubiquitous on netbooks. They may make colors look more saturated, but glossy screens can also increase glare and reflections. A few netbooks are available with matte displays, and reviewers generally give them high marks.
  • Chose the netbook to handle the tasks you want to perform. Most value or budget netbooks aren't equipped with enough horsepower to handle gaming or streaming videos from the web. If budget is an issue, experts recommend keeping your expectations in check and using your netbook for surfing the Internet or sending emails. A full-size cheap laptop is another alternative; see the separate ConsumerSearch report for the available options.

Will a netbook handle Windows 8?

The next iteration of Microsoft's Windows operating system is widely expected to become available sometime in 2012. Will these netbooks be able to run the new operating system? Yes, but probably not all that well. The 32-bit version of Windows 8 will need 1 GB of RAM and a 1 GHz processor to run, and many of the netbooks you'll find meet these requirements, but only barely. User reports say that low-end netbooks already struggle with Windows 7 and in fact often perform better with less system-intensive operating systems, such as Ubuntu Linux. So while you should be able to install Windows 8 on netbooks, you probably won't want to do so unless you're using a more powerful option, such as the HP Pavilion dm1z.

Subsidized netbooks from Verizon, T-Mobile and AT&T

Some wireless carriers offer netbooks at reduced prices --with a two-year data plan contract. Although a subsidized netbook could knock $200 or more off the price, experts warn that they are not always a good deal.

For one thing, data rates are expensive. To qualify for a reduced-price netbook from one of the major carriers, you must accept a two-year contract for at least $30 per month. That works out to around $720 over two years, plus the cost of the netbook itself. Also, those data plans are capped (for example, $60 for 5 GB per month with AT&T, $30 GB for 2 GB or $50 for 5 GB per month with Verizon), and heavy users could wind up with hefty bills if they exceed the contract limit. Verizon also offers a 10 GB plan for $80 per month. "Clearly, buying through a wireless carrier is no way to save money on a netbook," PC World concludes after comparing several subsidized deals.

The other issue to keep in mind is that subsidized netbook selections are limited.  AT&T offers one subsidized netbook, the Dell Inspiron Mini 10 HD (*Est. $50 with contract). It offers 3G connectivity; for 4G speeds, you would need to buy the company's 4G dongle or Mobile Hotspot for use with a separate netbook.

Verizon has two 4G netbooks on offer, and they both carry hefty price tags: The HP Pavilion dm1-3010nr is $750 with no contract, or $600 with a 2-year agreement. Customers who want a 4G option may want to consider ordering the dm1 directly from HP and adding HP's HSPA+ mobile broadband chip, PC World advises, which combined would be $100 less; or use the dm1 with Verizon's own 4G LTE mobile hotspot, which is $30 per month (for 2 GB of data) with a two-year contract. That hotspot would also connect four other devices beyond the netbook. The other 4G netbook, the Compaq Mini CQ10-688NR costs $620 without a contract or $450 with a 2-year agreement.

T-Mobile has also jumped on the bandwagon, offering the Dell Inspiron Mini 10 3G (*Est. $150 with contract) or a 4G-capable Mini 10 (*Est. $230 with contract) with monthly data plans starting at $40. T-Mobile has changed its plans to include unlimited data, but with speed restrictions after the first 2 GB (for $40-a-month plans) to 10 GB (for $80/month plans). You can prepay for specific amounts of data, but these plans are more expensive.

Finally, Sprint has the Dell Inspiron Mini 10 1012, which is 3G/4G capable (*Est. $50 with contract and rebate) and the 3G/4G Mini 11z (*Est. $150 after contract and mail-in rebate). Plans are $90 for 10 GB of 3G data/unlimited 4G data (where available) or $60 for 5GB/unlimited.

Overall, experts say that if you plan to use your netbook on a 3G or 4G mobile broadband network, subsidized netbooks are worth considering, and they are certainly a more elegant solution than purchasing a separate adapter. Just remember that once you consider all of the costs involved, a subsidized netbook might not be the no-brainer bargain it appears to be at first glance.

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