Singapore’s ailing PC maker IPC Corp. Ltd. said Wednesday its US distributor has signed a strategic marketing deal with US-based Internet company Juno Online Services to sell one of its core products.
In one of its biggest forays into the internet business,
IPC said it will sell its ultra thin client “Buddy” system to
California-based Vega, which will in turn sell it to Juno.
IPC, one of Singapore’s major PC makers until four years
ago, said it plans to chalk sales of at least US$150 million in its
marketing alliance if it is able to sell one million units of
Buddy.
The company believes the “strategic marketing alliance
with Juno will have a positive impact on the sales of Buddy in the US and (it
will act as a) business model for Buddy’s worldwide distributors to
explore similar deals with major ISPs in their respective
countries”.
The agreement means that retail buyers of Buddy in the US
will receive a mail-in rebate equal to the cost price of Buddy when they
sign up for an 18-month subscription to Juno Web, Juno’s internet
service. In addition to the rebate, Juno, which is one of the
largest ISPs in the US, will market Buddy over its Juno service.
Hence, under the deal, consumers who pay US$149.95 will
get a US$150 rebate from the American ISP. Buddy is basically a device
which enables multiple users to access the internet through a
single telephone line and internet connection.
Users can also work either on different or the same
applications simultaneously, while peripherals like printers can be shared. The product is currently mass marketed through retailers like Fry’s
Electronics, CompuUSA and Best Buy.
The deal is significant to IPC because its ultra thin
client business is one of the three operating divisions within the company,
which recently sold 24.9 percent of its equity to German e-commerce company
Integrated Information Systems.
