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COPYRIGHT 2004 Investor's Business Daily, Inc.
Byline: KEN SPENCER BROWN
In a scene from the 1982 movie "Tron," Jeff Bridges' character gets zapped by a giant computer, slicing him into a thousand pieces. He's then transported into the system bit by bit.
Now, more than 20 years after the film's release, the scene is repeated millions of times a day -- only with photos, music and video instead of spandex-clad actors.
Whether you're talking about downloading music online, recording shows on TiVo or posting vacation photos to your Web site, the world is moving toward a digital future.
Personal computer makers hope to cash in on the trend as a way to reach beyond the computer den and into the living room.
1. Business
Computer makers sell three things in varied combinations: hardware, software and services.
For most, hardware remains the biggest chunk of their business. This category covers a wide range of machines and devices, and the business model can vary by product.
Personal computers are the most high-profile product line, but selling these devices is largely a thankless task. They provide the lowest margins and, in some cases, serve as a loss leader for bigger packages of software and services.
PCs have become commodities. Companies buy standard parts from outside suppliers, assemble them and then ship the PCs...
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