Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Dr. David Gleitman who wrote (26553)	7/23/1999 1:54:00 AM
From: Ed Forrest	Read Replies (1) \| Respond to of 41369

Friday July 23, 12:49 am Eastern Time Free PC promos boosting computer sales, report says By Dick Satran SAN FRANCISCO, July 22 (Reuters) - A wave of ''FreePC'' offers led to a sharp rise in computer sales at stores last month, just when a seasonal lull might have been expected to hit, according to a report released Thursday by research firm PC Data Inc. But as sales rose, prices fell. The average cost of an Intel chip-powered, Windows-equipped PC fell by 20 percent from last year to $890, PC Data said, even without figuring in the $400 rebates used for many computer purchases. Still, the number of computers sold climbed 35 percent in the month as hardware makers and Internet service providers teamed up to offer the rebates for those agreed to three-year contracts for Internet access, said Reston, Va.-based PC Data. In some cases, as with cut-rate computer seller eMachine Inc.'s $399 Tower, that meant consumers were getting the computer for free, as long as they signed up for Internet service with CompuServe at $21.95 a month. The offer appealed to many first-time buyers. ''They're not really being given away, or course,'' said Stephen Baker of PC Data. ''People are paying, whether it looks a like it or not. They are still paying at the point of sale, and getting their rebates when they go home.'' The PC Data survey tracks only the point of sale in retail stores, which make up about 60 percent of home computer sales. The remainder of PC sales come mostly from direct sales via telephone and the Internet. Earlier this year, market research firms estimated that more than half of U.S. homes now have computers, fueled by a wave of under-$500 models that reached consumers who previously saw them as a luxury item. ''The free PCs are adding to that,'' said Baker, ''because it's bringing in buyers who don't want to want to pay anything upfront.'' While not all PC makers were offering free models, most were infected by the rebate bug, with Compaq Computer Corp. (NYSE:CPQ - news), Hewlett-Packard Co.(NYSE:HWP - news) and Micron Electronics Inc. (Nasdaq:MUEI - news) all offering programs. South Korean-owned eMachines, one of the first to offer the rebates, managed to climb into No. 3 in U.S. retail sales for the first time because of the promotions, trailing only Compaq and HP. The company, launched last November, has grown rapidly by selling low-priced machines. The ''Free PC'' promotion, made with America Online Inc. (NYSE:AOL - news), which offers CompuServe, boosted sales further, said Pattie Adams of eMachines Inc. ''It's been great for us, and the retailers love it,'' Adams said. -------------------------------------------------------------------------------- More Quotes and News: America Online Inc (NYSE:AOL - news) Compaq Computer Corp (NYSE:CPQ - news) Hewlett-Packard Co (NYSE:HWP - news) Micron Electronics Inc (Nasdaq:MUEI - news) Related News Categories: US Market News -------------------------------------------------------------------------------- Help -------------------------------------------------------------------------------- Copyright © 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. See our Important Disclaimers and Legal Information. Questions or Comments?