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 : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Glenn D. Rudolph who wrote (10637)	12/15/1997 4:54:00 PM
From: Moonray	Read Replies (1) \| Respond to of 22053

Packard Bell Math: Add Cyrix, Subtract Service Vendor Changes Formula to Improve Bottom Line As Packard Bell NEC prepares its first entry-level PC line bearing non-Intel processors, the No. 2 PC maker has another surprise for first-time buyers: It plans to eliminate on-site service and trim tech-support hours. The company's 90-day on-site service support for new products will end with the current product line, said retailers and sources close to Packard Bell, who confirmed the company will offer only depot, or carry-in, service for one year. A Packard Bell spokesman said the company does not comment on products not yet introduced and had no comment at press time on the changes in its service and support programs. Retail sources said Packard Bell is dropping back its seven-day, 24-hour customer support to 20 hours a day, from 5 a.m. to 1 a.m. Mountain time, and will drop technical support during seven national holidays. Of more significance was a Cyrix-based PC from Packard Bell. Such a system would normally surprise retailers and industry observers who have spent years watching Packard Bell build only Intel-based systems. But retail buyers were unimpressed by the new box, which is set to ship on Jan. 12 and is priced the same as a similar model from Compaq. The new Packard Bell computer closely resembles Compaq's Presario 2240, set to ship Jan. 14. Both models are based on 220MHz Cyrix MediaGX processors and come with 24MB of RAM, 20x CD-ROM drives and 56K-bps fax modems. Cyrix declined to comment on the existence of a 220MHz MediaGX processor, and at least one Cyrix OEM customer said the company denied there was such a processor on its "road map" of future microprocessor introductions. But retailers said the $799 Cyrix-based Packard Bell model would shift to a 233MHz chip at the same price in February. The Packard Bell and Compaq systems offer retailers low single-digit profit margins. A key difference, though, is that the Compaq system is offered on a no-return basis. With the retail margin on the Packard Bell model at 5 percent or less, buyers were unenthusiastic. "[Packard Bell is] just not very important to my plans any more," said one retailer contacted for this report, who asked to remain anonymous. "I can't make enough money on their $999 products." o~~~ O