Why not? If you compare plans available right now in the webhosting market, most of them should be considered cheap. Hardwares are getting more powerful and becoming cheap, that is eventually allowing the shared webhosting market to run cheaper. You shouldn't find any issue with a cheap package these days. Although, I recommend you to research about the host before you step up.
As me and wswd said, it depends.
Some cheap hosting providers are reliable, but there are also a lot who are not really reliable because of extremely overselling.
@CS Squad, Well, your offer seems to be very reliable and much affordable. But, what about the backups? Do you offer any Free Sitebuilder and Free Backups for the shared accounts ?
Technut, I have to ask...
How is that free hosting? Let's see...you get 1 year's "free" hosting, 1 year "free" domain. But it costs you $29.95 for that year?