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To: Stoctrash who wrote (26152)	12/4/1997 11:42:00 PM
From: Rutgers	Respond to of 50808

More on Interactive TV businessweek.com

To: Stoctrash who wrote (26152)	12/4/1997 11:51:00 PM
From: DiViT	Respond to of 50808

Wonder if these guys have a DVD option... news.com Sub-$1,000 PCs to get more power By Kurt Oeler and Michael Kanellos December 4, 1997, 6:05 p.m. PT Packard Bell NEC will throw down the price gauntlet this winter with the release of sub-$1,000 computers equipped 200-MHz and 233-MHz Pentium MMX processors from Intel, 56-kbps modems, and other performance features, according to some reports. The new computers, which will break current price/performance barriers, will come on the heels of price cuts by other vendors as well as news that archrival Compaq will release new sub-$1,000 Presarios based on AMD's K6 in January. On December 15, Packard Bell will release the Model 606, a 233-MHz Pentium MMX computer with 32MB of RAM, a 4.3 GB hard drive, a 20X-CD-ROM, and a 56-kbps modem, according to a report in Twice, a retail industry trade publication. The new model will cost $1,099 and then be reduced to $999 in January. Packard Bell declined to comment on pricing or new products. The Model 515 will feature a 200-MHz Pentium MMX, 32MB of RAM, a 3.2GB hard drive, a 20X CD-ROM, and a 56-kbps modem. It will initially cost $899 and be cut to $799 in January. Retailers have already been alerted to Packard Bell's plans, Twice stated. As priced, these models would set new price/performance barriers for computers from major vendors. Most sub-$1,000 computers from top-tier PC makers use processors from AMD or Cyrix, which are less expensive than similar Intel chips or less powerful Intel processors. The 166-MHz Pentium MMX is seen in a number of sub-$1,000 machines, for example. Furthermore, all of these computers typically have less memory, smaller hard drives, slower modems than the planned Packard Bell models, and often come without CD-ROM drives. 200-MHz and 233-MHz Pentium MMX machines are typically cost much more. Similarly configured 200-MHz machines are selling for $1,450 and up on computer retailer CDW. 233-MHz Pentium MMX machines with similar features go for $1,700 and up. A Packard Bell 233-MHz Pentium MMX machine with a smaller hard drive and slower CD-ROM sells for over $1,400 through CompUSA. "That is pretty good," said Kevin Hause, computer analyst at International Data Corporation on the alleged prices from Packard Bell. "That is very good." These price cuts might be being fueled by processor discounts from Intel. Other analysts said last month that two large customers of the chipmaker were scheduled to receive discounts on Pentium II computers. NEC, which is Packard Bell's parent company, is one of the largest Intel customers in the world. Moreover, the MMX chips are scheduled to be phased out during 1998. The low-end chip from the company will become the Pentium II by the end of the year, Intel executives said at a separate event. Because of this, heavy discounts on the MMX chips now to a loyal PC maker are not inconceivable, mused Hause. "It wouldn't surprise me that Intel is being very aggressive, especially to fend off competition in the low end."