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Netpliance News
August 3 Earnings Report

New MessageNetpliance News (modified 0 times) reforger
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For those of you who follow such things, Netpliance released its 2nd quarter earnings report today. There are a number of stories which can be accessed through this link, as well as audio of the conference call.

Of some interest is the claim to have solved the hacker problem by changing the design and rasing the price.

http://finance.yahoo.com/q?s=NPLI&d=5d

The links are at the bottom of the page.

08-03-2000 19:43:42

New MessageRE:Netpliance News (modified 0 times) Linuxguru
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Actually, the V5 (latest available version) is the easiest unit to hack and also has the best upgrade potential, since it supports the AMD-k6-III/333AFK superprocessor with minimal hacking. The BIOS is not yet flashable in-situ, but that's a non-issue, since the V1 BIOS works fine in it. The audio issue is a nuisance, but we'll fix that soon enough.

I do agree that raising the price to $399 would deter most hackers. However, we've stockpiled enough units to keep us busy for a while. It also screws Netpliance, since they have to compete with a steady stream of hacked or hackable units on EBay. There's really no incentive for amybody, hacker or otherwise, to buy these units for $399 when you can get an Emachines Celeron 533 for the same price without any ISP commitment.

Ironically, raising the price is not going to help them much, since they're talking about building inventories of the I-Opener 2001, whatever that is. So their cash burn rate is going to be high this quarter as well, but with a precipitous decline in sales. In short, Netpliance is screwed.

08-03-2000 23:42:51

New MessageRE:Netpliance News (modified 0 times) friar
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I just have a comment.
When negotiating anything, it is always best to try to come to a win-win scenario where both sides get something they want. Only then can they go on productively. When one side feels they must be the only ones to win, or neglectfully fails to consider the other side's point of view, they are wittingly or unwittingly engaging in a win-lose scenario. Nothing good comes out of a win-lose scenario, even for the side that comes out on top, because their 'win' only comes at a price. I have seen this play out over and over again.
So what does this have to do with Netpliance? It is clear Netpliance is going for the win-lose scenario in which they think they can come out on top after beating everyone else into submission. Not too wise a decision if you ask me. They may 'win' in the end, but at what price to them?
[commentary over, back to i-hacking!]
08-04-2000 01:56:22

New MessageRE:Netpliance News (modified 0 times) reforger
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I agree with friar. I listened to the broadcast and was struck by the fact that while they acknowledged some competition, they still seemed to think that they could dominate the older novice market. They also commented that the average income of their customers has gone up since they raised the price. While I am sure the latter is true, such customers might well think twice when they are confronted with choices. They seemed to discount a number of the new web applicances as either aimed at the educational market or intended for people who already "own a monitor". As broadband is rolled out by more and more cable companies and netpliance remains dial-up, I bet a lot of the more affluent novices would go for a package that connects to cable -- especially if the cable companies offered a web appliance that is installed at the same time as the cable modem!

After listening to the broadcast, I now doubt that Netpliance actually changed the audio chip of the I/O for a short production run designed to fill existing CC and CPUSA "hacker" orders. It seems more likely they came up with the V5 for one or more of the following reasons:

1. They planned to keep the price at $99 and really did want to discourage hacking.

2. They found that the audio new chip is cheaper and switched to it reduce costs. Since the motherboard is already designed to accept it, this may well have been part of a long-range plan.

3. The V5 is really the unit to be included in the I-Opener 2001 "experience" and they used early runs of it with the old packaging to fill existing orders.

In any event, there are lots of I/O's out there already to be hacked. Also, look for holiday sales on the new one!

08-04-2000 06:50:49

New MessageRE:Netpliance News (modified 0 times) area51
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Companies change chips when the supply dries up or like was said, if it makes $$ sense. Since this would require a new BIOS, or some modification to it, this was not a last minute quick change. I doubt that this is the new IO model, I think they made major changes because of supply problems with the LCD.
08-05-2000 03:09:59

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