Acer Offering Free Windows Smartphone with Contract

Acer is looking to move aggressively into the U.S. smartphone market by offering free or very low-cost handset devices to customers in exchange for a contract with the carrier. Acer's move into the market could also help Microsoft since Acer's smartphones carry the Windows Mobile operating system.

Acer is looking to make its mark on the U.S. smartphone market by offering free or low-cost handsets when customers sign up for a service contract with the carrier.

Acer has already been selling the company's Aspire One netbook at Radio Shack with a two-year AT&T contract for $99, plus $60 a month, which is music to AT&T's ears. With operator subsidies on board and Acer's economies of scale, Acer's Smartphone Unit President Aymar de Lencquesaing said he'll be able to push Windows phone prices down to free with contract.

"We'll make it a very simple, easy interface...and these will retail at zero dollars," he said.

Read the rest of this article on PC Magazine here.