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Technology Stocks : AUTOHOME, Inc

ATHM 24.34

-3.4%

Nov 7 9:30 AM EST

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To: KailuaBoy who wrote (23480)	7/10/2000 3:48:24 PM
From: FR1	Read Replies (1) of 29970

Come to think of it maybe ATHM could offer a cable ready PC and cut down on the little-old-lady-with-a-486 service calls. Leave that to Steve Case. Exactly my thought. Obviously, the DSL guys figure: 1) Sign a guy to a contract for 2 years. 2) We will have problems but they are trapped for 2 years so they will learn to live with us and we will have time to iron out the problems. 3) Also, we will use a computer that we configured so problems will be controlled. Why didn't ATHM do this a year ago? Once you have a customer's house wired it is going to be hard for them to change. Why doesn't ATHM do it now with all these super cheap net only computers? Make a deal with HP or somebody. Who's in charge of marketing? It really makes you wonder. Let's see: 1) Average Joe is offered high speed internet access from company A and company B. 2) Company A offers to come out to your house, give you a computer free, install it for free, and all you have to do is say you want broadband for 2 years from them. 3) Company B says you (Joe who doesn't know anything about computers) go to a store or flea market, buy a computer with the right configuration, and call us. We will send out a guy and have him spend hours trying to wire up whatever animal you bought. Which offer sounds better to average Joe? HP and others proved years ago that people want a done hardware package. They don't want to be bothered learning about the technical aspects of the box. You give it to me. I plug it in. If it doesn't work I call 800 and you come fix it. What's in it for the hardware guys? They can sell add-ons and upgrades. The whole deal can be based on the hardware guys getting paid from the monthly customer payments through some financing scheme. Bottom line - DSL guys get a guaranteed customer for years, DSL guys get part of monthly payment and hardware guys get part of monthly payment. DSL = score ATHM = Has not showed up for the game yet. Having said all that, I am still very long ATHM. I just wish we could get professional kick-ass management hired. Maybe the GMH guys will make a difference.

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