AT&T, Sprint and Verizon are among the companies offering subsidized netbooks this holiday season for as low as $49. Sounds like a great deal, right? No way, says Clark!

The subsidized netbooks come with a contract for an overpriced two-year data plan. You'll pay massive overage fees if you exceed the data cap. So while you might save yourself $80 on the upfront costs of a netbook, you could wind up paying as much as $1,500 over two years.

This marketing push is very similar to what you'd see in the 1990s when AOL, Compuserve and others offered a free computer in return for signing a three-year contract for dial-up service.

Remember, you'll be better served by competitively shopping for a netbook this holiday season and going with an unlimited Internet service plan.

A new price war in the computer business among retailers promises great deals for consumers.

Clark recalls when bought his first computer for his travel agency back in 1982. At the time, he needed specialized software to do travel accounting and specific hardware. The price? $25,000! Used!! And that was considered a deal back then!!!

Now his $19 Casio watch has more capability than that old computer. We forget how technology actually gets cheaper over time, unlike some other consumer items.

Recently, the consumer champ bought a new Acer laptop for $299. Then he opened up USA TODAY and saw that Wal-Mart is selling the same model for $1 cheaper!

Computers are getting so affordable that they're almost becoming impulse purchases. What a world of difference from the beginning of this decade, when buying a computer was a major financial decision.

Netbooks, meanwhile, remain so hot that most retailers are inflating the price. But Clark thinks by Christmas they'll be in the $100-$200 range.

Wal-Mart isn't a place that many people would consider buying a computer. But the mega-retailer is revamping many of its electronics departments to capture more market share.

Best Buy was expected to gain a lot of market share following the collapse of Circuit City. Yet it's been Wal-Mart, Amazon.com and the warehouse clubs that have picked up most of the business. As they all fight it out, it's the consumer who really wins.

When it comes to back-to-school shopping, Clark is often asked by parents if they should buy their son or daughter an Apple. He's basically agnostic on this question, leaving it up to each individual family. His own daughter uses cheap PCs at college.

It's important to remember even a cheap computer today is more sophisticated than what was used to put a man on the moon 40 years ago!

Back in 2007, Clark was wowed by a tiny computer called the Asus Triple E PC. This "netbook" laptop was the size of a book and only weighed a couple of pounds. However, some of our show's staffers who used it found it to be clunky first-generation technology.

Now Clark's beloved netbook is being saluted by the June issue of Consumer Reports. An updated version of the Triple E PC ($330) makes a list of their selected best buys.

The netbook phenomenon has really caught on and there are a number of manufacturers in the market. $300 is a standard price point, though Clark expects that price will dip as low as $100-$175 by Christmas.

Recently, Clark told you about a gotcha regarding the Radio Shack/AT&T $99 laptop offer. The catch is a hugely expensive data plan with caps on Internet usage.

Now comes word that AT&T has a "kill pill" technology that allows them to disable the laptop if you stop paying on your data plan! AT&T is not using the "kill pill" at this time, but the technology does exist.

In related news, AT&T is not allowing iPhone users -- the same ones who pay them huge monthly fees -- to use Skype on their iPhone. They're so afraid of the free market that they forced Apple to disable Skype on the data plan that you're already paying for. That's ridiculous.

The original monopoly phone company does not play fair in the free market! This really shows AT&T's monopoly heritage. Even to this day, they're cowards in the free market. As always, any AT&T representative is welcome to come on the show and dispute Clark's take.

Meanwhile, The New York Times says we'll have access to $99 computers later this year thanks to a breakthrough in computer chip technology. We're talking about devices for basic computing -- e-mailing, word processing and making Internet phone calls.

The entire brains of the computer will be stored on a $20 chip. These chips use almost no electricity and the battery power promises to run for at least 24 hours.

The irony here is that if you go back 10 years, computers were a fortune and TV sets were cheap. Now it's completely turned around!

RIP-OFF ALERT: Radio Shack and AT&T have teamed up to offer a $99 laptop, but there may be more than meets the eye to this offer.

The deeply discounted netbook is only available once you agree to a 2-year AT&T data plan…with a 5 gigabyte Internet usage cap that can really eat up your wallet. Keep in mind that the average consumer probably has no idea what constitutes 1 gigabyte of use or 5 gigabytes of use! And apparently there aren't any warnings either.

No surprise then that FierceBroadbandWireless.com reports people are getting clobbered on this "deal." In fact, a customer filed a lawsuit after her first month's bill amounted to $5,000!

We're not just picking on AT&T here. FierceBroadbandWireless.com has also taken Verizon to task over similar marketing practices.

So the takeaway here is make sure your wireless card is unlimited or you'll risk being charged massive overage fees. And you never want to tie the purchase of a computer into a commitment to use any particular provider's wireless card or data plan.

Likewise, you want to beware of T-Mobile's WorldClass International Roaming plan. One person allegedly got verbal assurance from T-Mobile's customer service that this was a cost-effective way to make calls from overseas. Then the customer was hit with a $5,000 bill, according to The Orlando Sentinel.

Remember, always buy a prepaid chip once you get overseas to make your calls!

Did you receive customer-no-service from Dell in the past? The computer giant has agreed to a $1.5 million settlement to provide restitution to consumers in up to 46 states.

Dell was taken to task over its no-interest financing, warranties, rebates and promises of next day service for business customers. The company has admitted no wrongdoing whatsoever in the settlement. Consumers who believe they may be eligible for restitution should contact their state's attorney general directly. The deadline to file claims is April 13, 2009.

Clark believes that Dell has now cleaned up its act. The proof? He's no longer overwhelmed with complaints about the company like he was for years leading up to this settlement.

But changing the public's perception of a company once it falters is difficult. Recall the difficulties Sprint had in cleaning up its name after earning poor marks for customer service.

How exactly do you rebuild a reputation? Clark suggests focusing on giving value to your customers -- not necessarily the best price. In addition, employers should "romance" their employees with good treatment so they'll want to go the extra mile for customers. Lastly, employees must be given the authority to actually solve problems for the customer.

The netbook trend has really taken off in the world of electronics retailing. Netbooks are ultra-cheap lightweight mini-laptops. Their genesis goes back to an MIT initiative to provide cheap computers for Third World children.

The for-profit computer manufacturers responded quickly when they caught wind of MIT's non-profit plan. One of the first companies to make money with netbooks was Asus with their Triple E PC. Today, the Triple E retails for around $279 and has sold some 6 million units.

Other manufacturers like Hewlett-Packard, Dell and Acer all have their own netbooks. The typical screen size is about 9 or 10 inches and they generally operate on Windows XP or Linux. For around $350, a business traveler can take a 2-pound netbook as a substitute for a regular laptop.

During the coming holiday season, you should see netbook prices in the $250-$500 range. So if you're a road warrior, you don't need to spend a grand for a heavy old laptop anymore!

One of the easiest ways to lower your electric bill is to reduce the power your computer uses when not in use. In fact, "Dracula" or vampire electronics account for some 5 cents of every $1 you pay for electricity.

Here's the good news: You can reduce consumption by 95% by going through a simple series of tweaks at ClimateSaversComputing.org. This move can save you up to $60/year!

Back-to-school sales offer a great opportunity to pick up a computer. These sales typically start on July 5 and continue on through early September.

If your idea of a back-to-school sale involves clothing, pencils, pens, and notebooks...well, today the "notebooks" are more likely to refer to a notebook computer than to the kind you write in!

Promo pricing makes this an especially good time to buy a laptop. The price point is still around $399 as it was last summer, but what you get for that price has improved greatly since last year. In addition, you typically won't have to jump through hoops for a rebate just to get a price of around $399.

Beware that Macs, however, are still just as pricey as ever -- including the very popular MacBook Air.

This year, the choices are more confusing in the PC world. You can either get a full-size 15-inch laptop or a mini-laptop that weighs about 2 pounds with a 9-inch screen.

The mini-laptops should go for between $400 and $600. Asus, Dell, HP, Acer and Everex all make their own versions.

Whatever you do, don't let the salespeople con you into buying an expensive laptop for $1,000 or more -- unless you're looking for a Mac. You can get all the functionality you're likely to want at around $399.

Remember several years ago when Internet cafes were all the rage? Over in Europe, some of these cafes were huge and occupied multi-floor buildings.

The last time Clark was in London, however, he saw one formerly popular cafe that was reduced from 500 terminals to about 75. What happened? The marketplace changed. Free wifi became wide-spread and suddenly everyone could access the Internet from their cell phones.

Likewise, the Internet will increasingly be anywhere you go. Delta Airlines will have high-speed connections on all its flights by 2009. The price for access will be around $10 for a few hours or around $13 or $14 on longer flights. Delta's system will not be compatible with Skype.

Meanwhile, what you surf on is undergoing a transformation. A new class of ultra-lightweight mini-laptops -- called "netbooks" -- is all the rage. Many of them are Windows based.

Clark recently (over)paid for one Hewlett Packard model at $599. Lenovo's S10 ThinkPad is going for $399, which is not much for a fully functional mini-computer. Expect a big marketing push for netbooks this holiday season. People will be snatching them up for themselves and their favorite road warriors.

Speaking of traveling, there are new TSA-approved computer bags available where you don't have to unpack your laptop at security checkpoints. The TSA can actually check your laptop while it remains in the bag.

Microsoft has long dominated the office software market. But the computer giant is now feeling threatened by alternative programs that target entrepreneurs and small business.

So Microsoft is experimenting with a $70 annual subscription service that's being sold at major electronics retailers. Customers will receive any new versions of Office for free during the year.

Google also offers its own office suite that's similar to Microsoft. Then there's also the free Star Office option. Clark has used Star Office for years and never had a problem with opening a Microsoft Word document. Why pay money for something that's available for free?

One final thought: If you're still using Internet Explore as your web browser, Clark encourage you to take a look at Firefox 3.0. Most tech reviewers think it's a clearly superior browser.

Have you ever heard Clark talk about technology using lingo that befuddled you? If so, he's come up with an internet access glossary that explains some of the "techspeak" you commonly hear on the show.

The penny-pincher may be a self-professed techno-idiot -- he doesn't exactly know how anything works -- but he knows how to connect the dots between different technologies to get the cheapest results.

One caveat: Sometimes Clark's passion for cheap and new technology can bring you more frustration than savings!

For example, Clark once talked Christa and her husband into using early VoIP technology at home to save money on calling. But her husband got frustrated because it was difficult to use and didn't always work. Likewise, Clark's wife became upset with him just the other day. She needed to use her cell phone to call into a telephone conference line, and he had a cheap (yet difficult) workaround.

So know that if you want to go cutting-edge to save money, you are a pioneer and there'll be more effort involved. Most people want ease -- and that will usually cost you.

In the early days of NetFlix, no one was quite sure if the company's business model would work. Now they've become an enormous success and have practically demolished competitors like Blockbuster.

The next challenge NetFlix has to face is the on-demand movie threat. So the company has come up with a $99 box that delivers on-demand flicks directly to your TV. A monthly subscription fee of about $9 is required to have access to some 10,000 movies.

Netflix is hoping this device will help them counter the on-demand services from some of the cable companies. But do you really want another box on top of your TV? That's become valuable real estate.

In related news, expect to see more tiny computers during the next few years. This trend should be a real boon for all the road warriors who have to lug around heavy laptops.

Clark has a new Hewlett Packard mini-laptop ($599) that weighs 2 pounds and has a full keyboard. It can fit easily in a woman's purse or inside a carry-on bag -- no need for a separate computer bag.

Think of it as HP's response to Clark's beloved "Triple E" PC. Clark was an early adopter of the "Triple E" and bought it for $399. Now he recently saw BJ's selling it for $274!

So business travelers and others, take heart. The days of hurting your shoulder are over. You no longer need to lug a heavy laptop and create a living for the chiropractors!

Clark was practically a majority of one on his staff when he got excited about the Asus Eee (pronounced "Triple E") PC. Joel and Christa were vocal during a recent staff trip about their dislike for Clark's beloved mini-laptop.

The Eee runs on Linux and sells for around $299. There's also a Windows version available for a hundred dollars more. The "wundercomputer" weighs less than 2 pounds, has an 8-inch screen and is great if you have little fingers. It's designed for very basic tasks like web surfing, e-mailing, word processing and cheap VoIP service.

While the original target market was schoolchildren, it's been embraced by a lot of travelers who have grown weary of breaking their shoulders with traditional bulky laptops.

Asus now expects to sell about 5 million units this year. Those huge projected sales numbers have scared the big players in the market. Microsoft has reversed a decision to can XP, and now will keep it going indefinitely because it works well with the Eee. Hewlett-Packard, meanwhile, is preparing to introduce its own small, light computer for $499 with a 9-inch screen, built-in camera and more.

Before the Eee, nobody wanted to serve this market -- now being called the Netbook segment. So to Joel and Christa, Clark wants you to understand that the Eee and others like it have really created a new opportunity. Travelers now can compute in a whole new way without having to lug around a huge laptop. This is the wave of the future!

Electronics are some of the hottest items for both men and women this holiday season. Clark's been looking at several websites dedicated to leaking the deals, and he has the scoop on what you'll be seeing at retailers on the day after Thanksgiving.

Let's get started with digital cameras. First off, Clark says this is one of the most difficult areas to comparison shop because it seems like every retailer sells about 25 types! Try going to CNET.com and reading customer reviews to get a handle on the model you want. That said, this is the first Christmas that SLR (single-lens reflex) digital cameras are coming in under $500. The advantage of SLRs is that they offer better picture quality even though they're a bit bulky.

When it comes to GPS units, look for prices around $100-$149. Best Buy is listing the popular TomTom One for $119. Staples will have some GPS deals for $124; Office Depot for $129; and Circuit City will be selling the discount Mio Walker GPS for $99.

Meanwhile, portable DVD players won't be much cheaper ($79-89) than they were last year, but you'll find the average screen size has gotten larger.

If you're in the market for a laptop computer, you'll find some deals in the $299-349 range at Circuit City and Staples, respectively.

Finally, look for a variety of HDTV deals. Some retailers are offering 32-inch screens for around $399. If you want to check out a Black Friday website for yourself, try logging on to BlackFriday.info. Clark told you several weeks ago how Wal-Mart was trying to put the kibosh on such websites leaking its deals. So somebody leaked the sales info to CNN and Wal-Mart got way more exposure than they expected!

Clark has finally gotten his hands on a mini laptop called the Eee (pronounced "Triple E") PC that he's been talking about for the past several weeks. At $399, Clark admits to having overpaid for this computer. But he's really impressed with its usability and light weight of around 1.5 pounds. If you have smaller fingers you should have no problem touch-typing on the keypad. Travelers can now take an affordable mini laptop with them instead of paying $2,000 for a traditional one. The Eee is made by a Taiwanese company that teamed up with Intel, and it's designed for the basics: web surfing, e-mailing, word processing and cheap VoIP service. In fact, Clark's Eee came preloaded with Skype software! His computer even boots up in mere seconds versus a few minutes with most other laptops. His Eee uses Linux as its operating system. Linux is beloved by techies, but even a non-techie like Clark finds it extremely easy to use this laptop. Meanwhile, a version that runs Microsoft Windows won't be available for another couple of months. What about the much ballyhooed price in the low $200s? Clark says we should begin to see those kinds of prices sometime next year. So if you bought a Nokia Tablet PC on Clark's recommendation and really thought he stunk, you owe it to yourself to get to a store and check out the Eee. It will truly allow you to travel with laptop functionality without lugging around 10 or 15 pounds of extra baggage!

Christmas lists last year were topped by requests for clothing, followed by peace and happiness. The least popular answer was computers. But the past year has brought many changes. Today the No. 1 thing people want is computers. Peace and happiness now comes in second, followed by big-screen TVs, clothing and money. Computers sales tend to come in waves. One of the last great sales surges was in 1999 when people bought systems that were Y2K compliant. On a side note, Clark recalled all the millennial hysteria surrounding wide-eyed predictions about planes falling out of the sky at the stroke of midnight on Dec. 31, 1999. Clark was in the air on New Year's Eve at midnight Greenwich Mean Time doing phone interviews with various radio and TV stations. Some people thought it would be the last time they ever heard from him because they expected his plane to crash! Fortunately it didn't. But those people who bought computers in 1999 now have systems that are the end of their life. That partly explains this holiday season's computer craze.

Folks often ask Clark what they should spend on a computer. Clark believes you can get a nice desktop for $300 and a good laptop for $450. But now a Taiwanese company has announced plans to sell a basic notebook model for the low $200s. The cheap laptop is being called the eee PC and should hit stores within a few months. Meanwhile, the Black Friday shopping sites have begun popping up with their predictions about sale prices on the day after Thanksgiving. According to some, Sears will be selling 32-inch hi-def TVs for $300 and 42-inch plasma TVs for $600. We'll have links to various Black Friday shopping sites for you as we get closer to Xmas.

It's great to have the opportunity to see rip-offs that Clark has warned people about being pushed on you and have the chance to say no upfront. Christa recently was buying a computer at a retailer and was being given the hard sell on two things that Clark just spoke about a few weeks back. One item was the Windows recovery discs, which were being pushed for $40. You can make one yourself for practically free or a get lower price from the manufacturer. The other was the extended warranty pitch. On a related note, Clark recently got a call from a distant relative of his who was in a store buying a TV. When the relative said he listened to Clark Howard and knew all about the cons of extended warranties, the salesperson took a very creative and unethical approach: He told the relative that Clark bought four TVs at that store and got extended warranties on every one of them. Clark is now thinking about doing a hidden camera sting where he exposes known retailers who try this tactic to make a sale on an extended warranty or service plan. Once again, for the record, Clark wants to emphasize that he doesn't buy extended warranties. That may change in the future, of course. But for now just say no when they're pushed on you.

Best Buy and Circuit City have come up with a new way to rip off customers buying computers -- and it has nothing to do with extended warranties. According to PC World, these retailers are now trying to get customers to pay for Windows recovery discs. The backup discs are rarely needed, but the retailers have found a way to boost profits by tapping into the "what if" fear of consumers who may not know a lot about computers. It turns out that you can make these discs yourself or buy them from the manufacturer for half of what the stores charge you.

PC World got so fired up over the whole issue that they sent in secret shoppers to get the real scoop. The shoppers found that Circuit City pushed them hard to pay an extra $30 for the store-made recovery discs. But at Best Buy, three out of five stores outright told the shoppers that it's not possible to make the backup discs yourself. Meanwhile, several of the top computer manufacturers say that their notebook models come with instructions and software for creating the recovery discs. Best Buy tried to explain its way out of the situation by telling PC World that it was all just a miscommunication between the secret shoppers and the sales associates. But you have to understand that electronics retailers have really had their profit margins crushed, so they're desperate to push extra stuff on unwitting consumers. One last word on extended warranties on computers: Don't get them! Computers develop so quickly that there's no sense in insuring what may be obsolete in a year or two. When you're shopping for a laptop, just make sure you get one that has at least one gig of RAM for the memory. Clark also recommends Firefox for web browsing, rather than IE.

Minneapolis' Star Tribune reports that sales of extended electronics warranties at Best Buy and Circuit City are down 12 percent and eight percent, respectively. Clark really rejoices in these stats because he hates when these warranties are crammed down your throat by salespeople. Speaking of that, Clark recently bought an LCD TV (on sale) at a major electronics retailer. When the salesperson started his spiel about the warranty and Clark declined, the salesperson dropped him like a hot potato. He actually left Clark by himself to lift the TV onto his cart and didn't even fill out a customer ticket! Clark thinks the man probably acted this way because he may have needed a certain close rate on the customer tickets he writes up. So rather than risk being penalized for not selling the warranty, the sales associate didn't even bother writing up a ticket. At Circuit City, for example, the only way they survive is through warranty sales. Best Buy, meanwhile, reported some $800 million -- more than half of their $1.38 billion in profits -- came from the sale of extended warranties.

Clark says the payback on warranties is worse than on a Vegas slot-machine. In fact, he jokingly advises people to get a quote on a warranty and then go drop that chunk of change in a one-armed bandit. At least then you'll get flashing lights, racket and noise, plus have some fun taking in the atmosphere! But seriously, for every dollar you pay on an electronics warranty, you only get back about eight to15 cents, after you account for depreciation and how quickly technology becomes outdated. Clark thinks you should never buy an extended warranty on computers and electronics. You're a little bit safer with a warranty on your appliances. Finally, keep in mind that credit cards will sometimes double the manufacturer's warranty on electronics. It's like getting an extended warranty for free!

The latest American Customer Satisfaction Index from the University of Michigan has been released. This quarterly survey has been around since 1994 and keeps tabs on the good, the bad and the ugly in multiple industries. The big news this year is that American automakers did very well. While the top automaker was foreign (Toyota's Lexus division), homegrown companies like Cadillac, Buick and Lincoln-Mercury all tied for second place. Meanwhile, Toyota's namesake division fell way behind on the tally. Clark thinks the Japanese automaker has been taking its eye off the ball lately. The Toyota business model is now geared toward growth and quantity, not quality. That accounts for why they've been issuing more recalls than ever. Fortunately for Toyota, there are some corporate initiatives in Japan to raise the quality of their namesake line of vehicles. In the computer industry, Apple is tops in customer satisfaction; Clark's wife has an Apple Macintosh that she loves. In the PC world, Hewlett Packard's HP line makes a beloved machine, yet HP's Compaq division has been voted the worst company in the industry. Meanwhile, Whirlpool continues its dominance in the appliances field, racking up its largest lead yet over the competition.

Cross-country communication is very tough nowadays with generational differences in technology preferences. So how do you get emails and photos to someone who's computer challenged? A year ago, Clark read about something called "Presto," made by Hewlett Packard. It's a simple device that prints out photos and email automatically, three times a day. It's like having the mailman come several times every day. Clark got one for his 83-year old mom for her to get photos, emails and calls from family without touching a computer. This is such a wonderful, simple device. It isn’t cheap ($99) but it's very helpful! It even emails you when you're low on printer ink. Check it out at presto.com. Also, here's a bonus: you don't get any spam, because you can control who's able to send you anything.

As you probably know, Clark hates to waste things. He had been using the same pair of headphones in the studio since the '90s. Even though they were old and ratty, he used them until the end of their life. Now he has a new pair, so don't be surprised if he's able to hear you callers a little bit better! Likewise, he holds onto clothes long after they should be thrown away or given to charity. In fact, his wife has to periodically purge their closet and make the old threads "disappear."

Clark read a TechWorld.com report about how manufacturers of the cartridges we all use in our printers give you a notice that your cartridge in empty when nearly 60 percent of the ink is still left. If you throw it out at that point, more than half the ink you pay for goes unused! So when your computer tells you replace to the cartridge, instead just pull it out and shake it. You'll probably get several weeks more use out of it. After all, manufacturers have a clear financial incentive to shortchange you and make you buy more of their product. What you pay to print per page skyrockets if you throw that cartridge out or recycle it too early. Multi-ink cartridges are the worst because they have individual ink banks for up to three or four colors. Any one of them can run out before the others do. Another way to save money on ink cartridges is to get them refilled. Manufacturers hate it when you do this. Studies haven't yet shown decisively if the refilled ink is good quality or not. So just shake it up, baby! Samsung is one of the few companies that makes printers with a toner saver button that can reduce the amount of ink you use per page by 40 percent. Over time, that becomes a great savings.

Dell is the company that changed the modern computer world as we know it. Dell set out to make computers more affordable for everyone and it worked. The company moved with the times one out of every three computers in the U.S. is a Dell. But Dell is having trouble these days. Dell can’t hit its financial numbers and its customers aren’t happy. The company has let its customer service get worse and worse, and customers have started losing faith. Dell finally seems to realize it has a problem and says it is hiring more customer service representatives. But, news reports state that the 400 new employees the company has hired in Oklahoma City are for corporate clients only. That’s just not smart. Until Dell puts the focus on the customer, you buy one of its computers at your peril.

Dell Computers has been so successful at selling computers that the company seems to have forgotten how to provide customer service. Dell is a terrific company, but its execs haven’t really focused on the customer service problems they’ve been having. Instead of fixing those problems, the company is trying something new that will further alienate people who are having problems already. To explain further, Dell is starting a “premium” line of computers that costs three times as much as the basic model. People who buy these computers will receive top-of-the-line customer service. But if you buy the basic model, you won’t get much help at all. It’s sort of like flying in first class versus coach. According to the Dallas Morning news, the company hopes to make 80 percent of the “coach” customers happy, which is pretty paltry.

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In other computer news, the $100 computer is a reality. It will be able to connect to Wi-Fi networks and include all the necessary parts of a computer for much less. Clark will keep you updated on it.

Laptops and desktops are very affordable these days with full-featured laptops starting at $500 and desktops as low as $300. Clark has encouraged people to go for it and several people have approached him to question the advice. But he’s stuck to his guns on this one. And now it’s paid off. Walt Mossberg, the technology columnist for the Wall Street journal, recently wrote that these computers are “just fine” for the average user. Mossberg has never said it’s okay to buy the cheapest computer as Clark does. But this time, he says a $600 computer is just fine. In fact, the No. 1 choice in testing was the e-machines computer. People used to turn their noses up to e-machines, but they have gotten serious and have helped drive the prices down to as low as $249 for a desktop. There is no need to spend four digits for a computer anymore. Computers are becoming essentially an appliance and plans are in the works for a $99 computer. There is no need to spend an arm and a leg to get a great machine.

Clark was shopping recently for a new computer and he came across one that cost $339 with several rebates. He found one that was $30 more with the same features and only one rebate. That was at Staples. He ended up buying the more expensive one, he confesses, but that’s because rebates are much easier in some stores than others. Staples is one of those stores; Costco is another. But for the most part rebates re a huge hassle. Buy where you know you will get your rebate money or don’t buy there at all.

In a couple of years, laptop computers could cost as low as $100-200. This will create a tremendous market for students everywhere. Countries, poor and not poor, will be buying laptops that will cost the same as an expensive dinner for two. Right now, desktops with monitors are selling for as low as $259, and laptops are going for as low as $499. And in the next few years, these cheap laptops will contain great features like wireless Internet, and will be much smaller then traditional laptops. If you have thought that computers are out of reach because of their outrageous prices, then you will soon be able to afford quality computers for almost no money.

Clark was shopping recently for a new computer and he came across one that cost $339 with several rebates. He found one that was $30 more with the same features and only one rebate. That was at Staples. He ended up buying the more expensive one, he confesses, but that’s because rebates are much easier in some stores than others. Staples is one of those stores; Costco is another. But for the most part rebates re a huge hassle. Buy where you know you will get your rebate money or don’t buy there at all.

Would you believe that there is now a computer on the market for teenagers that costs $1,700? It’s called the “Hip E” and it is framed in pink fuzz, graffiti or leopard skin. Kids are fashion plates and they want to make sure their computers are too. But this is ridiculous. You should pay $400 or $500 at most for a computer today. With rebates, it could be less. Even laptops are available for $699 after rebate. So, the marketplace has significantly discounted the cost of computers, and there is no reason to buy one that costs $1,700. If your teen is begging for one of these, buy a standard desktop, go to the craft store and glue some pink fuzz around the frame. You’ll both be happy. The best time to buy a computer is the day after Thanksgiving.

One in four people will probably buy a computer between now and Christmas, according to Investor’s Business Daily. That may sound like a lot, but it’s actually a decrease compared to recent years. So, computer makers have the ability to make a lot more computers than we want to buy. And that means we are going to have a bargain bonanza on our hands. The laptop market is getting cheaper, and the desktop market is dirt cheap. A desktop computer costs less than some televisions these days. Clark recently bought a Linux-based PC for $199. It does the bare minimum, but it works for him. Clark uses the computer for word processing, Web surfing and for his finances. Better yet, the computer is immune to viruses right now because it doesn’t run on a Microsoft operating system. By the end of the year, you will find some great computers starting in the $200’s. Last Thanksgiving, the same machines were at $499. In addition, the features that laptops will have this season will far outstrip what they could do last season. There are several smart reasons to buy a cheap laptop. The first is that no one will ask you about your machine if it’s just the basics. Another reason is that laptops will soon fit in a woman’s purse and can be taken anywhere.

About six weeks ago, Clark talked about some severe price cuts from Intel and AMD. Now, the prices showing up online and at retailers are fantastic. So, if you’re computer is not working for you, now is the time to buy. You can get a great desktop for about $350. You may have to mail in lots of rebates, but that’s okay if you don’t mind a little extra work. You would not want to pay that amount if you’re hoping to use your computer as a sound/video center or if you’re a graphic artist who needs more fancy capabilities. But for the average user, you can buy a computer for that little and maybe just buy some extra memory or RAM. It’s the one area you may want to beef up, usually from 256 to 512 kilobytes or higher. Memory is what makes it run fast, not the chip. What about laptops? You shouldn’t have to pay more than $600 for a standard laptop that allows you to watch movies, too. You can also get a portable DVD player for $150 if you want to lighten the weight of that laptop. Buying a “refurb” or refurbished computer is also a good way to save money on laptops.

If you are ready to buy a new computer, either a laptop or desktop, you may want to wait just a little while longer. Wall Street is in a tizzy because Intel, one of the main computer chip manufacturers, has built way too many chips. So, sometime over the next month or two, you will see some great deals on computers. Fancy laptops will be in the three-digit range, and your basic model will come with wireless access for only a couple hundred dollars. The number of wireless or “WiFi” locations is increasing because setting up Internet access is great for business and it’s cheap.

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In other technology news, Clark has used a small, but growing company called Vonage for his long distance for several years now. But Vonage seems ready for primetime these days. The company has just signed a deal with Circuit City whereby you can buy a set-up kit for $100. That includes all of the equipment and the activation fee. A number of other retailers will jump on board, and some of Vonage's competitors will pop up in retail stores as well. Technology is slowly obliterating the need for traditional long distance and monopoly phone companies. This is great news!