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eMachines: Expect appliances from us

Tags:
Internet-enabled Devices,
EMachines,
Clipper,
PC

John G. Spooner ZDNet US

Published: 19 Nov 1999 11:25 GMT

eMachines of Irvine, California company best known for making cheap PCs, is eyeing appliances.

No, not refrigerators or washers. Instead, its top executive hinted that the company is ready to jump into the market for even cheaper, special purpose Internet-enabled devices. eMachines "will put one in our roadmap soon," said president Stephen Dukker.

"I do believe there is a market for these devices. We view it as truly a different market from the PC space. (It is) for the other 40 percent that don't want a PC," he said. "It's a way to get connected (to the Internet) for people who really count perceive needing a PC."

In tandem with another announcement it made -- that it will move into the market for more expensive PCs -- Dukker's proclamation suggests that the two-year-old company is making an effort to grow up. What's more, it raises an intriguing prospect: Will eMachines do the same thing for appliances it did for PCs -- set a new standard for low, low pricing?

Dukker also suggested that eMachines may work with America Online to develop appliances. The two companies already have a broad-reaching research and development agreement.

"Year 2000 will be when we start to introduces some of those new products," he said. AOL, according to eMachines' SEC filings, will also be providing services, including hosting and e-commerce, for eMachines.net. eMachines is hardly alone in its ambitions. In fact, several other PC makers are clearly further along in their plans for it.

For example, Compaq demonstrated at Comdex a Windows CE-based Web Companion device, which will be used only for accessing the Internet. The device, code-named Clipper, is essentially a flat panel display with a very small case and wireless keyboard.

While eMachines' long term plans call for appliances, the company is attempting a move upstream in the PC market in the short term.

The company announced at Comdex/Fall this week the new eMonster A500 PC. The $899 PC is eMachine's first PC at such a high price tag. During the first quarter of next year, eMachines will begin offering newer, and more expensive systems, bringing its highest price systems to about $1,200.The eMonster 500A offers a 500MHz Pentium III chip, 64MB of RAM, a 13GB hard drive and an 8X DVD-ROM drive.

The company, for the first time, also announced a notebook PC at Comdex/Fall. "We re-invented the opening price points on the PC. We're about to do that with the notebook," Dukker said.

The $999 eSlate 400k notebook will offer an Advanced Micro Devices Inc. mobile K6-2 chip, running at 400MHz. It will be equipped with a 12.1-inch high performance addressing screen, 32MB of RAM, a 4.3GB hard drive and 24x CD-ROM drive and will weigh in at just over 6 pounds.

The company claims to have shipped 1.6 million units since it began selling PCs in November 1998. It is planning to issue its initial public offering in February or March.