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Gateway steps up with a $399 PC

Amid fears that consumers won't be shelling out for high-ticket items this holiday season, PC makers are lowering prices to try and loosen consumers' purse strings.

Gateway on Friday became the latest PC maker to offer a $399 PC, selling its 300S model for that price--sans monitor--after a $100 rebate. Gateway joins Hewlett-Packard and eMachines, which also offer $399 PCs.

Poway, Calif.-based Gateway plans to tout the desktop as part of a new ad campaign that starts Friday, built around the new "A better way" theme and highlighting Gateway's push into digital electronics. Gateway's ad will also feature the 42-inch plasma screen TV that will be formally announced Monday. As earlier reported, the model will sell for just under $3,000, which analysts say will make it the lowest-priced plasma-based television on the market.

With many analysts predicting that the holiday season may be weak for PCs, Gateway is aiming to show consumers that there are other reasons to check out its stores, such as to buy digital music players or video cameras.

The $399 Gateway PC comes with a 1.8GHz Intel Celeron processor, a 40GB hard drive, 128MB of memory, a CD burner, and a year's worth of America Online Internet service.

Gateway senior vice president Brad Shaw said his company is aiming to convince customers that it has the best value, whether that's a $399 PC or a $3,000 television.

View: The full story

News source: ZDNet

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