NEW YORK - WALT Disney Co is introducing US$350 (S$512) netbooks for children ahead of the holidays, even as other toy companies shy away from expensive items to appease recession-hit shoppers.
The 'Disney Netpal' - a laptop computer typically used for Internet browsing and e-mailing - will start selling at Toys 'R' Us stores in the United States and Canada and Amazon.com in late July.
The company's move comes as toymakers such as Mattel Inc and Hasbro Inc, and retailers like Toys 'R' Us, have pointed to demand for cheaper toys, as job losses, the weak housing market and tight access to credit have erased parents' ability to spend freely for their children.
Many analysts have said that selling affordable toys will be a better bet to attract shoppers this year.
This is Disney's first attempt at selling a laptop in North America and comes about five years after the No. 1 US entertainment conglomerate tried to enter the personal computer space with a US$1,000 desktop in 2004, according to Disney.
Still, weak consumer spending has hit its consumer products unit's licensing business, which posted a 9 percent decline in sales, and a 24 percent drop in operating income in the fiscal second quarter.
Despite the prevailing need among consumers to save, they were willing to spend more money if they saw value in a product, said Chris Heatherly, vice president of global toys for Disney's consumer products unit.
Netpal's software lets parents control online safety and browsing content for children, Mr Heatherly said. Aimed at kids aged 6 to 12, it also allows parents to choose who their kids can interact with by e-mail.
The version to be sold at Toys 'R' Us stores is sturdier but comes with less storage space, he added. Disney is in talks with various other retailers in the United States about selling the netbook, which is being made for Disney by Taiwan's low-cost PC maker, Asustek, Mr Heatherly said.
The company also anticipates selling Netpal in international markets like Europe and Asia by the end of this year, Mr Heatherly said. -- REUTERS
