Subsidized PC market

Published: 2 May 1999 y., Sunday
A start-up called Enchilada will launch yet another free-PC plan tomorrow that will allow customers to get the combination platter of Internet access and a PC for a low monthly price. It will recover the cost of the box through long-term Internet access contracts with the PC owner. These deals are expanding PC usage by lowering the initial investment involved in getting wired. And, if Enchilada is any indication, the initial investment is getting lower all the time. Enchilada will offer a free PC complete with a 300-MHz AMD K6-2 processor, Windows 98, a 15-inch monitor, and unlimited Internet access for $19.99 a month. The company will also send technicians to consumers_ homes to set up their PCs. Participants have to agree to a four-year contract for Internet access, said a spokesman for the company, or pay $799 in advance for the entire package. The company, which is a division of Simple Solution, also charges $99 for shipping and handling. PC upgrades are permitted after two years. Along with providing free installation, the company is creating its own help site, SOS Enchilada, that will answer basic questions about navigating the Web, purchasing products online, downloading plug-ins, and how to use chat sites. The company_s PCs are fairly complete, especially compared to some other free-PC offers. Other product bundles are also available. The "Enchilada Grande" package includes a Lexmark color printer, an office suite package with word processing, database, graphics, assorted games, and a four-year on-site warranty for an additional $9.99 per month over four years, or $1,199. Enchilada_s monthly fees are on the lower end of the scale for companies following the "cell phone" business model of givingaway the hardware with a service contract. How this market will develop and which strategy will win has yet to be seen. What is certain is that the free-PC phenomenon will endure. Intel executives, among others, have said that numerous companies are experimenting with free PC business modelsat present. Intel for instance, is now working with some of these free-PC companies, showing them processor road maps, providing them other technical information, and in general treating this as a new branch of the PC market.
Šaltinis: CNET
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

New iPhone app from MasterCard for ATM finder gets thumbs up

The iPhone's new “ATM Hunter” is a a free iPhone application built by MasterCard that allows users to quickly find the ATMs that are closest to them. more »

House says Visa, MasterCard are to blame for security hacks, card compromises

In security breach cases last year, such as Hannaford Bros. supermarket and the card processing firm Heartland Payment Systems, cybercriminals gained access to millions of consumers' credit card details. more »

Ingenico warns contactless technology will divide the market

Ingenico, a provider of payment solutions, says contactless technology will split the retail market this year, improving sales figures for early adopters and costing those who shun the additional investment in this burgeoning technology. more »

Patent office validates many claims in widevine

Widevine Technologies today announced that the US Patent and Trademark Office has reconfirmed the validity of many claims of Widevine's U.S. more »

Nokia makes high-dollar investment in mobile payments startup

Nokia Corp., the world's largest maker of cell phones, is making a large investment in California-based Obopay Inc., a startup that's pushing person-to-person mobile-payments technology. more »

Banks invest in more tech to find synergies between anti-fraud, anti-money laundering

The increasing amount of overlap and duplication of data, tasks and processes in their anti-fraud and anti-money laundering divisions is driving banks to seek synergies between compliance, risk management and security, according to a new report from Datamonitor. more »

Global IPTV subs exceed 20mn

The total number of IPTV subscribers worldwide passed the 20mn mark at the end of 2008, according to new figures from Informa Telecoms & Media, taking into account both disclosed and estimated figures. more »

"Television is like the invention of indoor plumbing"

The IPTV World Forum opened its doors this morning on a bright London day, and the mood was equally optimistic indoors, with the conference rooms packed for keynote presentations from Christopher Schläffer of Deutsche Telekom, Christophe Forax from the European Commission and the BBC's Richard Halton, charged with making Project Canvas a reality. more »

Card fraud pushes consumers to non-bank online payments

A new Gartner Inc. report suggests that financial fraud could drive consumers away from banks and into the arms of electronic payment systems, such as PayPal, that they perceive to be more secure. more »

MasterCard: PayPass 50 million issued

In the last year this more than doubles the number of cards and devices in circulation around the world. more »