FYI...An interesting article about internet appliances in the Wall Street Journal Online....
interactive.wsj.com.
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Personal-Computer Makers Work
On New 'Windows-Less' Products
By JOHN R. WILKE, GARY MCWILLIAMS and DAVID BANK
Staff Reporters of THE WALL STREET JOURNAL
10/28/99
<<Major personal-computer makers are quietly working on a wave of products that won't use Microsoft Corp.'s Windows PC-operating system, the source of the software giant's market power.
The desktop machines, which are expected early next year, will be designed primarily to surf the Internet and be priced far below standard PCs running Microsoft's ubiquitous Windows 98 operating software, industry executives said.
These Internet computers, or "appliances," won't soon supplant Windows PCs, which will likely dominate the market for years. But if they take off, they could begin to erode Microsoft's dominance of the desktop.
Major PC makers are taking a variety of approaches to the emerging market. Gateway Inc. is building a line with no Microsoft software at all, and may jointly market it with America Online Inc., which recently invested $800 million in Gateway, people familiar with their plans say. Compaq Computer Corp. hasn't decided what basic software to use in its Internet line, which it will preview at next month's Comdex computer show, other industry executives said.
Dell Computer Corp. also plans to bring out a line of Internet computers, some using Microsoft software and some without, people close to its efforts said.
Internet Changes Landscape
Microsoft, meanwhile, is scrambling to keep PC makers in the fold. It is working with some of them to make MSN Web Companion, an Internet machine which will be tied to Microsoft's MSN Internet service. It is based on Windows CE, a stripped-down Windows version that has had limited success in the market so far.
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Antitrust Suit Emboldens PC Makers
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Microsoft views the shift to consumer Internet devices as part of its broader struggle with AOL. "I think we have the lead on them," said Yusuf Mehdi, MSN's director of marketing. "We also have the jump on them in partnerships. We understand how to work with hardware makers."
Microsoft's goal is to make getting on the Web as simple as making toast-and to tie users to Microsoft's Internet service and MSN.com "portal" service. PC makers, too, are expected to use the new machines as way of winning customers for their online partners.
Depending on the quality of components, such as screens, and on particular marketing deals, the price for many of the desktop machines should range from $199 to zero, if sold in combination with monthly Internet service. Most will consist of a screen and wireless keyboard and probably won't contain a disk drive or use Intel Corp. processors. They also will offer an "instant on" feature, eliminating the annoying PC "boot-up" sequence, and automatically connect to the Web.>> |
