MICRON ELECTRONICS ENTERS MARKET TO SELL SUB-$1,000
From The Wall Street Journal
NAMPA, Idaho -- Micron Electronics Inc. said it will announce today it is the first major direct-mail computer vendor to enter the fray for the $1,000 personal computer.
Jeff Moser, vice president of the desktop group said the computer maker studied the sub-$1,000 market for several months before deciding to launch a competing product. The risk is that such computers could drive margins lower and cannibalize sales of more expensive computers, but Mr. Moser believes the new machines will attract new buyers.
To date, most direct-mail PC makers stayed away from competing with low-cost retail models that have broken the $1,000 barrier in the past year because the directmail vendors prefer to target experienced buyers who know what they need and are willing to spend more on their purchases.
The company will launch a $999 Millenia SE model with a 233-megahertz MMX Pentium chip, 16 megabytes of main memory, a 3.2 gigabyte hard-disk drive, a 2-megabyte video card, a 16x CD-ROM drive and other standard features. A 15-inch monitor costs $200 extra. Micron will also launch more advanced machine with a 233-megahertz Pentium II processor for $1,599.
The new models reflect Intel Corp.'s recent price cuts as well as cost savings in Micron's manufacturing. Micron Electronics is two-thirds owned by Micron Technology Inc., a Boise, Idaho, chip maker.
January 20, 1998 12:15 AM
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