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'Free' PCs Hit Storefronts

Systems available at steep discounts with Internet contracts.

By Jeff Partyka, IDG News   

FreePC's plan to hand over personal information to advertisers turned off some consumers, so companies this week took a different tack on low-cost, and free, PC deals. Avoiding privacy issues, Best Buy, CompUSA, and eMachines each paired up with Internet service providers to offer $400 rebates on personal computers.

CompUSA announced Thursday an instant, in-store $400 discount on any PC purchased from July 3 to July 5 if you sign up for three years of CompuServe 2000 Internet service at $21.95 monthly. After those dates, you can get a mail-in rebate for $400 for buying desktop and notebook computers and also sign up for the CompuServe service. The deal does not extend to Apple computers and handheld and personal digital assistant products.

On July 3 only, select CompUSA stores will offer a 366-MHz MaxTech PC with Intel Celeron processor for free--after the in-store discount. Participating stores are located in Atlanta, Baltimore, Dallas, Detroit, Los Angeles, Minneapolis, New York City, and Washington, D.C.

Meanwhile, Best Buy is offering a $400 discount on PCs (including configure-to-order models) and notebooks if you'll sign a three-year contract for Prodigy's Internet service at $19.95 a month. "This offer could make entry-level PCs free," according to Best Buy representatives, who announced the deal Thursday.

The company also offers a $250 rebate with a two-year Prodigy contract, and a $100 rebate with a one-year contract.

America Online announced its deal with eMachines on Wednesday: Three eMachines models, including its $399 eTower, are eligible for a $400 rebate when buyers sign a three-year CompuServe 2000 service contract. AOL and CompuServe software are preinstalled on eMachines' PCs as part of the deal.