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

Nigeria: ATM is Now a Fraud - Victim

INTERVIEW: Fraud victim describes mistrust of ATMs in Nigeria. more »

Cisco IP Video Technology to Enable Groundbreaking NBC Coverage of Beijing Olympic Games

Cisco announced today it has been selected to provide Internet Protocol (IP) video network infrastructure and video-encoding solutions to NBC during the network's coverage of the 2008 Beijing Olympic Games, Aug. 8-24. more »

Microsoft and NBC Deliver Groundbreaking Online Olympics Viewing Experience

Q&A: Executives from MSN, NBC and Microsoft offer details behind the largest online broadcasting event in history. more »

HP, Intel and Yahoo! Create Global Cloud Computing Research Test Bed

The goal of the initiative is to promote open collaboration among industry, academia and governments by removing the financial and logistical barriers to research in data-intensive, Internet-scale computing. more »

Microsoft Announces Reorganization of Windows and Online Services Business

Platforms & Services Division to Split Into Two Groups and Report to CEO Steve Ballmer. more »

Privacy to the Test – Exploring the Limits of Online Anonymity and Accountability

More can be done to ensure that people can be confident that their privacy will be protected online. more »

Government says card fraud on the rise in U.K.

A UK crime survey shows credit and debit card fraud has reached a record high of £535 million. more »

Cisco Combat Exam Fraud with Global Test Delivery Enhancements

New security measures underscore commitment to protect certification integrity and value. more »

Sparkasse KölnBonn standardizes its branch IT with technology from Wincor Nixdorf

Sparkasse KölnBonn has just concluded a framework agreement with Wincor Nixdorf. The agreement covers more than 500 devices. more »

Aladdin Knowledge Systems Reports Second Quarter 2008 Financial Results

Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), an information security leader specializing in authentication, software DRM and content security, today announced financial results for the second quarter of fiscal year 2008. more »