To: Boplicity who wrote (154202 ) 2/23/2000 1:17:00 PM From: calgal Respond to of 176387
austin360.com Free PCs chart Compiled by staff Monday, February 21, 2000 From frenzy to fizzle Operating on Internet time, the free-PC experiment soared and crashed in less than a year. Here's the short history of free and cheap PCs aimed at the home market. Free-PC With venture capital backing, the company introduced a program last February giving consumers a free Compaq computer as long as users were willing to have advertisements constantly displayed on the screen. Consumers flocked to its Web site to sign up, but the company ended up losing $106 million for the year. PeoplePC Launching in October with a high-volume, low-cost model, the reseller offers a package to consumers, including a brand-name computer and Internet access for a set monthly fee. This year it is teaming up with major employers such as Ford Motor Co. to provide employees with PCs at a subsidized monthly cost. eMachines The company acquired Free-PC in January and pulled the plug on the free computer program. EMachines offers consumers rebates in return for making a long-term commitment to an Internet service. eMachines started selling PCs in November 1998 and has since shipped more than 2 million units. Last year, it lost $5.7 million despite rising to No. 3 in the PC retail channel. Other brands By the second half of 1999, major PC makers such as Compaq, Hewlett-Packard and Dell were offering rebates or discounts of about $400 for consumers who signed a contract with a partnering Internet access provider such as CompuServe, Prodigy or, in Dell's case, DellNet. So far this year, stores are offering numerous incentives, including price cuts, mail-in rebates and credits of up to $400 for Internet access.