AOL's $299 PC 367
cmj writes "Internet.com reports 'Looking to attract households that still aren't online, AOL is offering new customers a $299 PC system if they sign a one-year $23.90 dial-up Internet service contract.' A click through AOL's ecommerce site reveals the the specs as 1.7 GHz Celeron with 256 MB RAM, 40 GB hard drive, 56K modem, 10/100ethernet card, 17" monitor and Lexmark printer. The PC is running Windows XP, and includes 'AOL Office Powered by Sun'. Also of note is the fact that the $299 appears to be financed at around 22%. The math ( (12*23.90)+299 ) seems to suggest that you can get a $699 computer for $585.80 plus any finance charges. Setting aside the question of whether this is a good deal or not, one has to wonder whether AOL is desperate for new customers and resorting to bribery, or just progressing to the next step of branding. With this action AOL controls everything from the OS to the Word Processor to the web sites their customers browse."
Deja vu, MSN (Score:5, Informative)
Re:Deja vu, MSN (Score:4, Informative)
$299 + 12*$23.90 = $585.80
I do not think they are losing money supplying a low end computer for over $500.
Re:Deja vu, MSN (Score:3, Insightful)
I do not think they are losing money supplying a low end computer for over $500.
I see, and it costs AOL nothing to provide internet service for a year?
They're trusting customer laziness, duh. (Score:4, Insightful)
It works, too, because... (wait for it)... people don't want to change their phone numbers. (Another reason the cell companies dislike number portability). AOL is assuming the same thing will happen with their service -- customers will decide it's too much work to change it, stick with AOL for years, and repay AOL's investment.
(Besides, AOL is an evil megacorporation. If they don't make their money back, they'll just find a way to write it off on their taxes.)
Re:Deja vu, MSN (Score:5, Informative)
Re:Deja vu, MSN (Score:5, Informative)
I think that you're remembering incorrectly. ISTR that the thing that really killed the MSN rebate business was that it had legal problems in some jurisdictions. In particular, California law made is such that people could sign up, drop the MSN service immediately, and not have to return the $400. When customers started to abuse this in droves (i.e. not long after somebody figured it out), Microsoft decided to can the idea.
Re:Deja vu, MSN (Score:3, Funny)
Re:Deja vu, MSN (Score:3, Interesting)
Why would AOL care? AOL saves money if you pay $24/mo for the service and don't use it. No support costs. I know this is Slashdot, and hence everything not open source is an evil corporate conspiracy, but seriously...
Its a cheap machine. We know this without seeing it. Maybe they will try to establish a brand and these will be quality PC's. If you're AOL you might figure you'll get 60% retention when the contract expires, 20% who just
been there and done that (Score:5, Insightful)
Also, the numbers for how much this computer is worth don't factor the right things in. Anyone who'd go for this deal needs some sort of ISP to begin with, and the $23.90/month may be higher than other ISPs, but does give the customer something of value beyond the PC. On the other hand, is that really a $699 computer?
Did we collectively forget Pricewatch? (Score:5, Informative)
The 17" monitor goes for $83 [pricewatch.com] retail.
The printer is probably worth less than $20. [pricewatch.com]
So, if getting a [$200+$83+$20=] $303 PC for about $600 sounds like a good deal, then AOL is your savior! (!!)
Sadly, AOL is going after those least-informed of consumers with this deal, so they'll probably find a fair number of takers.
For those who don't consider AOL worthless, let's consider the cost of ISP service on top. A quick query here [findanisp.com] tells me that it's easy to get dial up for $8/month or less.
So....[$303+($8*12mths)=] $399 worth of "internet experience" for $699.
Re:been there and done that (Score:3, Informative)
According to this AnandTech article on processors under $100 [anandtech.com], an Athlon XP 1600 (which actually runs somewhere near 1.4 GHz) would leave a 1.7-GHz Celeron (which will be a P4-derived product, not
wha? (Score:5, Interesting)
How are they controling you? Do they prohibit you from visiting other sites or installing another OS/Apps? Just because they install some default image, that doesn't mean they're controling what you do with the system.
Re:wha? (Score:3, Funny)
Linux w/ AOL (Score:5, Interesting)
In fact there is a small tutorial [yolinux.com] on how to connect to AOL with Linux.
I wonder if this offer is valid with AOL Broadband, that way you could be on Broadband, and still have a cheap PC.
Re:wha? (Score:5, Insightful)
The terms of the deal are clear. It's your choice whether you want to take the deal or not. Sounds like you've already decided you don't want to - that's your prerogative. Someone else may decide it makes sense - that is their prerogative.
Re:wha? (Score:4, Insightful)
If this shipped with Lindows instead... (Score:5, Informative)
Don't flip out on me, it was just a thought...
Re:If this shipped with Lindows instead... (Score:4, Interesting)
Re:If this shipped with Lindows instead... (Score:5, Interesting)
So wait (Score:5, Funny)
Seriously though, these are the kind fo people who would whine about Lindows since it's different. Doesn't matter how much the same it is, they'd whine and not use it.
I mean an AOL user here at work got her computer upgraded from 98 to 2k (new computer). From a user standpoint there is almost no difference. She was even used to loggin in since network shares required it. None the less she found about a million things to whine abou. One was that when you open explorer in 98 it goes to the C drive, in 2k it goes to your home directory. She bitched and moaned that this was confusing/difficult/took time/etc till we found a fix.
No man, you do NOT want these people on Linux, espically not one that is logged in as root by default.
Re:So wait (Score:5, Insightful)
And what's the big dealio about Lindows defaulting root for the primary user? So what? So does XP! This can now be changed in Lindows 4.0 just as easily as creating a user in XP. Problem solved.
Re:So wait (Score:3, Interesting)
It wouldn't be that cheap even without XP. Buying XP as an OEM entitles you to huge discounts, I am positive AOL isn't paying retail for XP. The Walmart PC's aren't even that cheap after Monitor/Printer and they have less ram and cpu speed.
> And what's the big dealio about Lindows defaulting root for the primary u
Re: (Score:3, Interesting)
Re:So wait (Score:3, Insightful)
Re:So wait (Score:3, Interesting)
Re:So wait (Score:3, Insightful)
As someone else mentioned, Mac OS X is the one consumer OS that gets this right: root isn't even enabled by default, and sudo is the only way to act as root without mucking around with NetInfo.
Yeah but once you break in you can easily enable root. My mom has OS X, and she forgot her password. I created a new user, gave it admin access, SUed to it, enabled root, changed the root password, SUed to root, and changed her password.
If Lindows didn't have that stupid security flaw, it would be a better choi
Re:So wait (Score:5, Funny)
I mean an AOL user here at work got her computer upgraded from 98 to 2k (new computer). From a user standpoint there is almost no difference. She was even used to loggin in since network shares required it. None the less she found about a million things to whine abou. One was that when you open explorer in 98 it goes to the C drive, in 2k it goes to your home directory. She bitched and moaned that this was confusing/difficult/took time/etc till we found a fix.
Hemlock, I hope.
I've had to migrate too many users who treated "c:\" as their home directory. Someone started bitching to me about not going directly to c:\ when Explorer opened, I'd be deeply tempted to go BOFH and replace her computer in the middle of the night with an 80286 running DR. DOS and Windows 2.
Re:So wait (Score:3, Funny)
I think swapping it out for an Etch-a-Sketch [purdue.edu] would be better. You could even pass it off as one of "those new-fangled Tablet PCs."
Re:If this shipped with Lindows instead... (Score:2)
Excellent (Score:3, Funny)
Did I mention that I own AOL stock? Yeah, I really should've cashed out years ago.
Considering... (Score:5, Informative)
http://gotapex.com
You'll find BETTER Dell machines for ~$400 with 6 months of AOL included!
Re:Considering... (Score:3, Informative)
It's not an amazing deal, and not really that different from some other things, but it'll be interesting to see what an AOL controlled PC does. I also wonder if the support costs associated with the computers will drive the ultimate cost of this beyond what AOL can handle.
Re:Considering... (Score:5, Funny)
Uhm, I don't think so. Wait, "got apex", whew.
Re:Considering... (Score:5, Funny)
Wonder how many moderators will mod the grandparent post down because they don't read carefully and think goatse.cx has started selling computers. Could you imagine, " - Microsoft Internet Explorer provided by goatse.cx"? The animated page access icon?
Eww.
Jelousy (Score:3, Funny)
Uh Oh, is that Steve Jobs I'm seeing in the distance? Looks like he's fuming...
Next Month: the iNet internet service, so Steve too can also claim to control everything from the hardware to the software to the internet.
(and yes, I own an apple, and hell no, I would never buy iNet
Re:Jelousy (Score:2)
Re:Jelousy (Score:2, Informative)
So yea, I wouldn't call eWorld a failure...
Re:Jelousy (Score:4, Informative)
AOHell goes back much further than eWorld. I think you meant to refer to something called "AppleLink Personal Edition," which was available for both Apple IIs and Macs (if that gives you more of an idea how far back it goes).
Re:Jelousy (Score:3, Interesting)
Note that I said "online service," not ISP.
Re:Jelousy (Score:5, Funny)
More info: eWorld [vanvr.com]
wow (Score:2)
with the printer and monitor, it's a good deal.
just... have to reinstall windows for the dummies, or install linux for the extremely computer literate.
Re:wow (Score:2)
Re:wow (Score:2)
though with the aol subscription commitment for a year it's more of a partial payment deal, or hand fee+rent.
i should be sleeping.. maybe somebody will see if they can find the same specced computer for cheaper than what this deal is..
...Or leave it the hell alone as it is (Score:5, Funny)
I've actually started to recommend AOL to people!
There it is. I'm sorry. But there is some reasoning here, if you all won't mod me down as a troll first.
The main reason has to do with AOL 9's control of spyware, parental rules for Internet usage, and yes, ease of use. For some users out there this is exactly what they need. AOL's numbers aren't near as high as they used to be due to user savvy, but they do still serve a purpose. Think of all your friends/relative's computers you've had to run AdAware or Spybot on recently and you have to agree...
Even on broadband!
Bad Dobby! Bad BAD BAD!!!
Re:wow (Score:2)
Cannot connect to word processor, please try later (Score:2, Interesting)
$699 for that clunker? (Score:2, Interesting)
More like More like $399 [pcclub.com]
$699 will buy a P4 3.0GHz that's better in most other respects too [pcclub.com]
What year is whoever submitted that in?
Jason
ProfQuotes [profquotes.com]
Re:$699 for that clunker? (Score:2, Insightful)
Re:$699 for that clunker? (Score:2)
Jason
ProfQuotes [profquotes.com]
Interesting (Score:5, Informative)
$299 is financed at 21.7% APR (Score:5, Informative)
Here's the fine print (beware the fine print is a image file):
http://www.aolcheckout.com/aol-pc/aol01b-
"$299 Financed plus a one-year committment to AOL for 23.90"...did you read financed?
my take on the deal...
according to the fine print, you are issued a Tiger Gold Card with approve credit from Wells Fargo, furthermore, the regular APR is 21.9% (i think, the fine print is very small).
so now you have a credit card from a company with a really high interest rate! "Boom!" as Madden 2004 would say. That is the hook for AOL, they can make some money by establishing new customers for a credit card company.
Its seems like a nice deal on the front end.
Re:$299 is financed at 21.7% APR (Score:5, Insightful)
Re:$299 is financed at 21.7% APR (Score:5, Insightful)
There may be a way... (Score:3, Interesting)
It worked for my home loan & saved me many 10s of thousands of dollars.
Re:$299 is financed at 21.7% APR (Score:3, Insightful)
But what does that MEAN?!?! (Score:2)
so thats a credit card with $585.80 balance on it?
So what happens if I pay it off in one shot? (I understand that I am in the minority. I have a card that gives me air miles- I put EVERYTHING on that card, and always pay off my monthly balance. Yes, I went to Hawai'i two years in a row.)
Oh yeah! TAxes, surcharges, and Fees! (Score:2)
this is starting to look like you get to pay approx $699 for a $699 computer, but get 12 months of AOL for free!
Strategy (Score:2, Interesting)
Charge cheap for something the user needs to use the company's products, then hope that the customer stays on board and buys more products from the company.
Will this work? I doubt it.. IMO they will lose tons of cash.. But hey, the real beneficiaries of this are the customers, so I'm all for it.
webmaster shirts and more [wabshirts.com]
Re:Strategy (Score:2, Insightful)
AOL is $$$ hungry (Score:3, Interesting)
Being that I sort of know the nullsoft crew, I know they probably didn't like having to do this.
I guess AOL had to make money on those cool CD tins they were shipping out last year.
Not bad for WebTV users (Score:4, Insightful)
I can see this as being killer for grandparents and others living on fixed incomes.
The system specs are decent, considering the target audience is probably not going to be encoding digital video, compiling code, or running photoshop.
The office suite is a nice touch. It sucks to get emailed a MS Office document and not being able to open them in anything but WordPad. I get so many tech support calls related to people not being able to open MS Office attachments. If the AOL office suite includes Excel and PowerPoint clones, all the better.
Re:Not bad for WebTV users (Score:3, Interesting)
AOL a woman? (Score:5, Funny)
When did my girlfriend start working at AOL?
Re:AOL a woman? (Score:3, Funny)
obvious...
Sounds great! (Score:2)
I don't feel like piecing a machine together for her, and she needs internet service anyhow... and she needs something EASY to use, not a crap service provider.
Seems like a good deal. It's either this or a cheap PC and something like MSN or AOL. This seems like the easiest (if not the cheapest) way to go.
Controls everything? (Score:4, Informative)
Give me a break. AOL doesn't care what you do with the PC. Go ahead, wipe it clean and install your favorite alternative OS. All that matters is that you sign a one-year commitment to AOL's dial-up service at $23.90 per month. That $286.80 commitment subsidizes the cost of the computer. AOL has stated (maybe it's even in a linked article) that a common reason given for cancellations is loss of access to a computer. In a few tests they have offered such users a discounted PC rather than let them become former users. As a result of what they have learned they believe that offering a really cheap computer will attract/retain members. They need to do something as they have lost a couple million recently.
Sounds like a business decision to me. But, hey, maybe it's all just part of a vast conspiracy by a big corporation to control everything we do.
Re:Controls everything? (Score:3, Insightful)
I think that this is really the big point. ISPs have surprisingly good customer loyalty when you consider how little difference there is between one dialup service and another. I guess that a big part of it is just the hassle of switching email addresses. In any case, AOL knows that many of those people who sign up for one year of service will continue to get service from AOL for the for
haha (Score:2, Informative)
totally hacked [geocities.com]
I remember the I-Opener (Score:2)
This computer, however, is being sold on the condition that you are entering into a contractual agreement to continue service for one yea
Math Error in Article Post (Score:4, Informative)
So, (12*(23.90-15))+299 = $405.80...
Ok, so let's see what I can buy that system for.
I just purchased two small machines, Athlon 1900+, 256MB Ram, 40GB Hard disks, with integrated I/O and everything for $280 each delivered. A 17" monitor can be had for about $100 and a cheap-ass Lexmark printer is about $50. What's that come out to? $430? and it's a MUCH MUCH MUCH faster machine...
So the bottom line is that this deal is marginal at best, and with AOL's buying power, it's probably very profitable in the end. They can probably put that machine together for about $200-250.
Re:Math Error in Article Post (Score:3, Interesting)
$200-$250, for which they charge $299. OK, i'm alright with that. Keep in mind, they're buying in bulk and they still have to put the thing together, or pay someone else to. In your own figures you're assuming your time is worth nothing.
Also, you can't go with $200-250 vs. actual income of $408, because then profit is (408-250-(cost of 1 year internet access)). Internet access is not free, not even to AOL. They pay for bandwidth, they
( (12*23.90)+299 ) (Score:2, Funny)
Boy, I'm a geek...
AOL's next plan... (Score:5, Funny)
AOL's "1. Mail computers 2. ??? 3. Profit!!!" plan is as follows:
Savvy computer users will figure out that erasing the hard drive and installing their own OS removes the 1045 hour time limit, and removing the TNT from inside the computer case completely eliminates the possibility of the computer blowing up.
Then, in an RIAA-like effort, AOL will sue hundreds of thousands of individuals for illegally using their computers, which constitute valuable intellectual property. They will ignore the fact that by law, when they send something in the mail, it becomes the property of the recipient. It will take a long time for this to get to the courts, in order for the courts to throw it out, and in the meantime, many frightened teenagers will settle with AOL for amounts greatly exceeding the market value of the computers.
Clean profits for AOL.
Insurance companies should do this! (Score:5, Funny)
You could sign up for a 2 year policy with Geico, and get a '89 Mercury station wagon, with external wood paneling, for only $300 bucks!
funny... (Score:2, Insightful)
"compuserve and the like are offering these great deals because no one will be on dialup anymore"
Now it seems that dialup is going to be aruond for a long time.
my work is cut out for me (Score:2, Informative)
This offer is just capitalizing on the prevalence of poor and ill-informed individuals. If AOL is successful, we'll have a rough estimate as to how many of these people there are. Don't get me wrong, more power to AOL--it's thei
Misleading math... (Score:5, Informative)
This math is only correct if you assume that there's no value in having AOL dial access. If you think that AOL access is worth the $23.90 a month that millions of people are already paying for it, you're getting a $699 computer for $585.80 plus any finance charges, plus agreeing to stay on AOL for a year.
This doesn't sound any more sleazy than cell phone companies giving you a heavily discounted cell phone in return for a commitment for longer service. If you don't want to make the commitment, don't sign the contract, and don't take the up front discount.
To me, this looks like a decent way for people who aren't online to get online very cheaply and learn whether they want to spend more for broadband, etc., later.
Business is Business (Score:2, Insightful)
But... (Score:3, Insightful)
Or, for the Maccies, you can get an eMac for $750 (Student Discount) which has a CD Burner, 40gb hard drive, and 1ghz processor. (Also doesn't contain gobs of pre-loaded poo.)
Not You! (Score:3, Insightful)
Don't be so naive. You are NOT the target consumer for this product - this is aimed at people who aren't tech-savvy. Anyone who can put together a computer will always be able to do a cheaper and better job on their own. People who cannot [read: most people] must buy a premade box, and this isn't really that terrible a deal for them. While AOL service isn't the right choice for most
Systemax, cheap but good. (Score:4, Informative)
Doing a quick pricewatch [pricewatch.com] search shows the pc is an average deal, and system max uses quality oem hardware, your choice.
But I'd rather go over to Outpost.com (frys) and get something like amd200+mb [outpost.com] for 100 bux, get a nice case [outpost.com] for 40 bux, some memory, hd and gfx card for about 350 for that price. Pick up a used 17 inch monitor for 20 bux at RePC [repc.com].
There are good deals, but you have to look. I found used dual P2's for 250 bux with scsi drives. Awesome linux/bsd servers.
Dim bulbs think alike (Score:2, Insightful)
Back on point Let AOL build the whole car they will have to support it and their T-S is so good they all deserve a long vacation in In
already been done, long ago, in other news: (Score:5, Insightful)
You can get dial-up Internet access with no AOL bullshit and a cool PC starting at only $20/month from PeoplePC [peoplepc.com] while paying NOTHING down.
You can buy a PC for $200 at wal-mart. [com.com]
go AOL. tsk.
It's not just a good idea. It's the law! (Score:3, Insightful)
"What OS do you have, Mac or Windows?"
"I think it's AOL."
Imagine hearing it a lot more.
Do not fear AOL (Score:3, Interesting)
It comes to prove IMHO that AOL's current positioning in the US market is a "path dependent" phenomenon, coming to be by a succession of (unlikely) historic events, and by no means natural. I do not fear AOL controling or dominating anything. It seems to me the only thing they are trying to do is to control their downhill slide.
One last thing. I thought you would be interested to know that AOL Brasil has a Linux download area [aol.com.br], and that they are recommending Netscape 7.0 as a browser [aol.com.br]. I'm not sure, but I believe this has no parallel in AOL other markets.
One very interesting thing about this (Score:5, Interesting)
Seems like it's almost more that Tigerdirect wants to sell more machines than AOL trying to get more users.
299pcdeal.com
Domain name: 299pcdeal.com
Registrant Contact:
tigerdirect.com
Domain Admin (lonny.paul@tigerdirect.com)
-
Fax: none
7795 W Flagler Street
Miami, FL 33144
USA
Administrative Contact:
tigerdirect.com
Domain Admin (lonny.paul@tigerdirect.com)
-
Fax: none
7795 W Flagler Street
Miami, FL 33144
USA
Technical Contact:
tigerdirect.com
Domain Admin (lonny.paul@tigerdirect.com)
-
Fax: none
7795 W Flagler Street
Miami, FL 33144
USA
Billing Contact:
tigerdirect.com
Domain Admin (lonny.paul@tigerdirect.com)
-
Fax: none
7795 W Flagler Street
Miami, FL 33144
USA
Status: active
Name Servers:
ns1.domain19.net
ns2.domain19.net
Creation date: 11 Sep 2003 20:56:47
Expiration date: 11 Sep 2004 20:56:47
Redmond: Defender of the Free World! (Score:3, Funny)
Thank GOD for Microsoft...defender of our freedom to choose! Uhhm...wait...
cost? (Score:4, Interesting)
Actually, now I'm starting to wonder how cheap an internet connection IS for AOL. If there are plenty of ISPs out there selling service for $9.99 a month, it makes you wonder what AOL's profit margin is on that.
Lets all stop bashing AOL.... (Score:3, Insightful)
the other money in this equation (Score:3, Insightful)
New tech support lingo (Score:3, Insightful)
New Dells (Score:3, Informative)
Re:AOL Office Powered by Sun (Score:5, Informative)
Re:So... (Score:5, Insightful)
You're exaggerating by leaving out the fact that they're getting AOL access, which millions of people are paying $20+ a month for without getting a cheap PC. If you think that AOL service is worth nothing, then your math works, I suppose, but...
Re:So... (Score:4, Insightful)
Personally, I'd go straight to broadband rather than dial, but that's 2x as much, and we're talking about people who don't want to spend that kind of money on the internet.
Re:So... (Score:3)
*shakes head* You guys are sooooo elite. You know why everyone wants to have a computer, right? It is obviously so they can have the fastest machine and the most elite monitor and, and, uh...
Yeah, I'm willing to guess that for millions of people, having a machine sit in their living room that they can turn on and click a button and be "connected" to someplace friendly -- with a buddy list and communities and a friendly voice TELLING them they have mail...
Re:Windows XP eh? (Score:5, Informative)
Uh no - it is actually somewhere in the $25 dollar range (plus the cost of any media that they ship along with it, and also first line tech support)
Re:Yay (Score:2)
Re:locked in... (Score:3, Insightful)
Re:Selling your soul... (Score:3, Funny)
Since when does buying AoL for a year constitute selling your soul?
There must have been a release from the Vatican that I missed. Or maybe in the upcoming "Vatican III" which introduces new methods of selling souls, which will include buying AoL.