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Technology Stocks : Gateway (GTW) -- Ignore unavailable to you. Want to Upgrade?

To: Kory who wrote (6854)	10/27/1998 8:53:00 AM
From: IceShark	Respond to of 8002

Kory, speaking of YourWare, I wonder if GTW has any liability to MBNA if the customer defaults on the financing? Probably not, since this is really a tricked up credit card customer feeder to MBNA similar to a balance transfer, without having to offer the low introductory interest rate. While this is a long way off event, I suspect there will be some mighty upset customers when they figure out just how underwater YourWare has been designed. I think it is a big mistake to offer up to 48 month high cost financing with a two year trade-in point on a product which is superceded so rapidly, and outside of the monitor, is effectively worth scrap value after two years. Due to the manner in which GTW is promoting the plan, I think the customers will blame GTW rather than MBNA when they have a boat anchor they still owe 2 years of payments on. I really think this is a great way to temporarily goose sales and build customer expectations that are bound to be let down hard. But then those rent to own appliance places seem to get away with it. Regards, Ice