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Politics : Ask Michael Burke

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To: Fred Fahmy who wrote (65190)	7/24/1999 3:50:00 PM
From: gnuman	Read Replies (3) of 132070

Fred, re: GTW margins This is an area that's getting hard to figure. GTW's Y/Y GM growth was 1%. But today when you buy a Gateway, you get 12 months free ISP service. I've heard this is 80% margin biz. On TV they show this as a $240 value. How do the bean counters treat that one? I'd really be interested to know. (MB, any thought's?) (And if I decide I don't want their ISP, do I get a $240 discount?) VBG, (I think) A point on this thread is that makers are scrambling for ways to generate revenue and profit growth. It's not coming from boxes anymore. Wonder what comes after free ISP's when that taps out?

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