The background noise on the rumor mill is picking up, and the buzz seems to be about an Apple netbook product. If you remember, Steve Jobs has in the past dismissed an Apple netbook, saying “We don’t know how to make a $500 computer that’s not a piece of junk.”
Yet market forces seem to be converging on the netbook as both an entry-level computer and a highly portable and inexpensive computer that lets you stay connected to the Internet while on the go.
The latest rumors revolve around possible new contracts with Foxconn Electronics, who would serve as Apple’s manufacturing partner for the new device. But what will the new device be? The majority of analysts expect a Mac netbook that would run OS X, have a 10-inch touch screen, limited memory, and probably a solid state hard drive. It would also have Wi-Fi as well as the ability to connect to a cellular data network.
If such an Apple netbook does become available, it may be sold in two different ways: as a standard Apple product available from Apple and retail stores, and as a subsidized product available from cellular providers. In the latter case, you could buy the netbook at a much lower cost than retail in exchange for signing up for a multi-year contract, similar to the way mobile phones, including the iPhone, are marketed. One marked difference is that the netbook would probably be available from multiple carriers rather than a single carrier.
By going with a subsidized model, Apple could build a netbook without contradicting Steve’s previous statements.

