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Technology Stocks : Dell Technologies Inc.

DELL 122.55

+4.4%

Nov 21 9:30 AM EST

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To: LENNY PADRON who wrote (127860)	5/22/1999 2:27:00 PM
From: Mohan Marette	Read Replies (1) of 176387

'Free' Pcs- Where is the 'Profit'? Lenny: Here is a bit more on 'free pcs' and profits. ========================= Courtesy:PRNewswire via Gobi.com PROFITS They aren't many. Microworkz clears a slender $37 profit on each machine, which allows for very little overhead (and extremely little tech support). Its biggest expenditure is marketing and advertising, about $250,000 a month. All three major companies say the biggest profits will come when consumers start shopping on line, using built-in Internet services. Gobi is betting that will take two to three years. As for Free-PC, profits depend on how effective those on-screen ads turn out to be. Citibank, Amazon.com, New Line Cinema and E Toys are all in the first wave of advertisers, paying as much as $10,000 to run their ads once a day on the first 10,000 computers the company plans to ship. =============================

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