Price War in Small Computers

Staking out market positions for what may be the hottest Christmas item

James Belmares watched intently as his six-year-old son James III eagerly pushed the keys of a Texas Instruments home computer in a Target discount store in Dallas. Belmares, the father of five children, had previously been scared off by the price tag on the machines, but last week the computer was only $299, and the company was offering buyers an additional $100 rebate. The tempting price and the unrestrained enthusiasm of his children made a purchase virtually inevitable. Said he: "The kids are...

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