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The i-Opener is a discontinued low-cost
The hardware was sold below cost as a loss leader, with the expectation that Netpliance would recoup the money lost in manufacturing costs via its service plan. Analysts estimated the cost of the hardware to be $300–$400, and Netpliance cited costs of $499. The price was planned to increase to $199 after the promotional period. Shortly after the device's introduction, an engineer discovered that it used commodity computer hardware. By modifying the hardware, users were able to load their own software onto the i-Opener, bypassing the need for the subscription service plan. Although this disrupted Netpliance's business model, Netpliance initially welcomed these users, assuming that most customers would not be willing to install custom parts. As demand among computer hobbyists grew, retail outlets reported shortages, and Netpliance attempted to prevent custom hardware or software from being installed on new stock. Netpliance instead directed people to their developer program. In April 2000, Netpliance canceled existing orders on its website if buyers refused to accept a $499 termination fee for the service plan. Buyers protested the change in the terms of sale, and Netpliance was fined $100,000 by the
The i-Opener is a discontinued low-cost internet appliance
An Internet appliance is a consumer device whose main function is easy access to Internet services such as World Wide Web, WWW or e-mail. The term was popularized in the 1990s, when it somewhat overlapped in meaning with an information appliance, ...
produced by Netpliance (later known as TippingPoint) between 1999 and 2002. The hardware was sold as a loss leader
A loss leader (also leader) is a pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services. With this sales promotion/marketing strategy, a "leader" is any popular artic ...
for a monthly internet service. Because of the low cost of the hardware, it was popular with computer hobbyists, who modified it to run desktop PC software without the internet service.
History
Netpliance introduced the i-Opener in November 1999 at a $99 promotional price. It was designed to be an easy-to-use, low-cost internet appliance for first-time users of theWorld Wide Web
The World Wide Web (WWW or simply the Web) is an information system that enables Content (media), content sharing over the Internet through user-friendly ways meant to appeal to users beyond Information technology, IT specialists and hobbyis ...
. Access to the internet was limited to Netpliance's own $21/month service plan, and users were limited to Netpliance's own web browser. There was no provision for installing third-party software. The keyboard had a dedicated key for ordering pizza from participating pizza parlors.
The hardware was sold below cost as a loss leader, with the expectation that Netpliance would recoup the money lost in manufacturing costs via its service plan. Analysts estimated the cost of the hardware to be $300–$400, and Netpliance cited costs of $499. The price was planned to increase to $199 after the promotional period. Shortly after the device's introduction, an engineer discovered that it used commodity computer hardware. By modifying the hardware, users were able to load their own software onto the i-Opener, bypassing the need for the subscription service plan. Although this disrupted Netpliance's business model, Netpliance initially welcomed these users, assuming that most customers would not be willing to install custom parts. As demand among computer hobbyists grew, retail outlets reported shortages, and Netpliance attempted to prevent custom hardware or software from being installed on new stock. Netpliance instead directed people to their developer program. In April 2000, Netpliance canceled existing orders on its website if buyers refused to accept a $499 termination fee for the service plan. Buyers protested the change in the terms of sale, and Netpliance was fined $100,000 by the Federal Trade Commission
The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) United States antitrust law, antitrust law and the promotion of consumer protection. It ...
in 2001. By July 2000, the price of the i-Opener had quadrupled to $400, and Netpliance left the internet device market in January 2002.
See also
* 3Com Audrey * Virgin Webplayer *Nettop
A mini PC (or miniature PC, nettop, or Smart Micro PC) is a small-sized, inexpensive, low-power, Legacy free PC, legacy-free desktop computer, desktop computer designed for basic tasks such as Web navigation, web browsing, accessing web appl ...
* Network Computer
In computer networking, a thin client, sometimes called slim client or lean client, is a simple (low-performance) computer that has been optimized for establishing a remote connection with a server-based computing environment. They are som ...
References
{{reflist Information appliances Computer-related introductions in 1999