HP’s Laptop Subscriptions: A Better Deal for Them Than You
▼ Summary
– HP offers subscription plans for its consumer and gaming laptops, starting at $34.99 and $49.99 per month respectively, which include support and the option to upgrade after 12 months but never allow ownership.
– The subscription terms are financially punitive, as cancelling after the 30-day trial but before a full year requires paying the remaining annual fees, and failing to return the hardware incurs a fee near the laptop’s full MSRP.
– Financially, these subscriptions are a poor deal, as renting a laptop typically costs more than buying it outright within 14 to 24 months, even when comparing to actual retail prices, not just MSRPs.
– The program is criticized for potentially preying on lower-income customers by offering low upfront costs, despite being more expensive long-term and locking users into ongoing payments and terms.
– The article concludes that consumers are better off purchasing a used or refurbished laptop to gain ownership, as the subscription offers no long-term benefit and subjects users to HP’s changing terms and hardware availability.
The recent spotlight on HP’s laptop subscription service has sparked significant discussion, particularly regarding its long-term value for consumers. While the model promises access to the latest technology without a large upfront payment, a closer examination reveals that these plans often cost significantly more than simply purchasing the same hardware outright. For many, the allure of an annual upgrade comes with a steep financial penalty and a loss of ownership.
HP markets subscriptions for four productivity and four gaming laptops, starting at $34.99 and $49.99 per month, respectively. The process involves no down payment, just a soft credit check. Each plan bundles a coverage package with round-the-clock live support and the option to upgrade to a newer model after twelve months. This upgrade feature is the service’s primary selling point, offering a path to a fresh device every year. However, participants never gain ownership of the laptop; there is no option to buy out the lease at any point.
The company provides a 30-day trial with a full refund policy. Yet, the fine print holds critical consequences. Cancelling after that initial month but before a full year still obligates you to pay for the entire annual term. For example, ending a $129.99 monthly subscription on day 31 triggers a bill for the remaining eleven months, totaling over $1,429. Even after fulfilling a full year, you must pay for your final month and return the device empty-handed. Failure to return the hardware results in a non-return fee roughly equivalent to the laptop’s full manufacturer’s suggested retail price (MSRP), regardless of payments already made. HP reserves the right to remotely lock the device and send unpaid balances to collections, potentially damaging your credit.
Beyond the strict penalties, the fundamental economics are unfavorable. An analysis comparing subscription costs to actual retail prices, not inflated MSRPs, shows the plans are costly. HP laptops frequently sell for far below their official MSRP. For instance, the HP EliteBook 6 G1q has an MSRP of $3,206 but is currently sold by HP for $1,763.30. At a monthly fee of $84.99, a subscriber would pay more than that sale price in just 21 months. A review of all subscription-eligible models confirms this pattern: renting any laptop for two years consistently exceeds its purchase price, with some becoming more expensive in as little as 14 months.
While the upgrade option is available at the 12-month mark, it commits the user to another full year of payments, and HP’s terms state that “Your Fee in subsequent months may change.” This structure can create a cycle of recurring debt. Such subscription models, much like certain financing plans, often attract budget-conscious consumers who cannot afford a lump-sum payment. However, for those in that position, purchasing a certified refurbished or used laptop from a prior generation is almost always a more financially sound decision, as it results in actual ownership of the asset.
The service is marketed as an affordable gateway to cutting-edge technology, but the reality is a long-term premium. Subscribers pay more over time and remain subject to HP’s changing terms, hardware availability, and upgrade policies. Furthermore, the perceived benefit of a yearly refresh is questionable. By the time a personally owned laptop feels sluggish or a meaningful new component generation launches, a subscriber will have already spent far more than the cost of a new, superior model. The program appears designed to maximize customer lifetime value for HP, often at the expense of the user’s financial well-being.
(Source: The Verge)