Microsoft and eMachines Launch Internet Device with MSN Companion

Strategic Insights -

Microsoft Corp. and PC maker eMachines Inc. have announced the launch of an Internet device that can be bundled with a subscription to Microsoft's MSN Companion Internet access offering. The eMachines MSN Companion comes with a full-sized keyboard but without a monitor, designed to work with a standard PC display. This device is the second to be allied with the MSN Companion program, which provides a free computer to those who sign up for a three-year subscription to MSN Internet Access, paying $21.95 a month.

Key Takeaways:

  • The eMachines MSN Companion is an Internet device that comes with a full-sized keyboard and a 56 Kbps modem, designed to work with a standard PC display.
  • The device is powered by Microsoft's stripped-down Windows CE operating system and is expected to be available by the end of this month at major PC retailers.
  • eMachines is offering 15-inch and 17-inch monitors separately, allowing owners to upgrade to a full-fledged desktop PC and retain the more expensive monitor.
  • The MSN Companion program targets consumers who have yet to purchase a PC but are eager to gain Internet access from home, with more than 40% of US homes not owning a PC or having an easy way to access the Internet.
  • The MSN Companion Internet access offering costs $21.95 a month for a three-year subscription, and subscribers will pay about $400 to purchase the hardware and receive a rebate for the same amount.
  • eMachines has been criticized for selling its low-cost computers too cheaply, exacerbating its financial losses.
  • The company's president and CEO, Stephen Dukker, stated that the MSN Companion offers consumers an easy-to-use device with built-in music media players and compatibility with a majority of the rich multimedia sites on the Internet.
  • Yusuf Mehdi, vice president of MSN, emphasized the goal of the MSN Companion program to provide consumers with an easy way to access the Internet.

Statistics:

  • More than 40% of US homes don't own a PC or have an easy way to access the Internet.
  • The MSN Companion Internet access offering costs $21.95 a month for a three-year subscription.
  • Subscribers will pay about $400 to purchase the hardware and receive a rebate for the same amount.
  • The eMachines MSN Companion is expected to be available by the end of this month at major PC retailers.

Sources:

  • Newsbytes.com, http://www.newsbytes.com
  • Microsoft MSN, http://www.msn.com/
  • eMachines, http://www.e4me.com/