Cheap PC Company In Trouble

from the told-ya-so dept

Back in April, I posted an article about SlipStream in which I indicated that it probably wasn’t going to work. Of course, I didn’t think it would only take two months to go down the drain. I still wouldn’t be surprised if some investor tries to bail them out. The whole thing is silly though. Apparenlty no one actually writes business plans and tries to understand a market any more before just going in to business.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Cheap PC Company In Trouble”

Subscribe: RSS Leave a comment
Jon Acheson (user link) says:

Its a flaw in their financing, not in their concep

Perhaps they were naive in their financial planning, but I don’t see that their current situation invalidates their business plan.

Their financial backer is walking out on them. So they’re doing the right thing and not taking anyone else’s money until they have the cash reserves to carry through on their promises. It sounds like they’ve been caught in a nasty situation through little fault of their own, and they’re doing the best they can.

After all, it’s going to take time for them to find more financial backing (or get the money they were promised from their backer). People are saying “It’s been a whole 24 hours, where’s my free PC?” and it totally ignores the fact that the financial end of things doesn’t run on Internet time.

And, how many users did they sign up in just a few weeks? Sounds like something was working…

Mike (profile) says:

Re: Its a flaw in their financing, not in their co

Point taken. I have been a little hasty to knock on them.

However… I still question their business plan on the following grounds: they admit in the article that they are losing hundreds of dollars on each sale, and yet they hope to make that up on rental applications. At the same time they don’t give any requirement to rent the apps. You definitely have a problem, where people will self select themselves to buy the PCs but not use the apps, and then the company is basically giving away a dollar for ever 80 cents that someone sends them. That’s really not sustainable.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...