Sugar slashes price of e-m@iler in attempt to capture Easter sales

Amstrad halved the price of the latest model of its e-m@iler phone product yesterday, in an effort to boost sluggish sales in time for the Easter shopping period.

Amstrad halved the price of the latest model of its e-m@iler phone product yesterday, in an effort to boost sluggish sales in time for the Easter shopping period.

The price of the E3, the third generation of the phone that allows consumers to send e-mails, was slashed from £99 to £49. Evolution Securities, the broker, said the E3, available since the autumn, had "launched to initially slow sales" and that a price cut was therefore expected.

Simon Sugar, Amstrad's commercial director and the son of its founder Alan Sugar, insisted the price of the phone was always going to be reduced, as the company benefited from manufacturing economies of scale. He said Amstrad had benefited from the weakness of the dollar - the product, made in China, is procured by the company in dollars. The previous two models of the phone have also been heavily discounted.

"It is a big price reduction but it is part of a plan," Mr Sugar said.

The new price may be particularly tempting for consumers, he said. The gadget has the additional function of allowing people to make video calls to other E3 users and so is best bought in pairs - two will now be available for the previous price of one.

The E3 also has other new functions, such as a colour screen and the ability to e-mail digital photographs. Counting all three e-m@iler products - it was launched four years ago - some 400,000 of the phones have been registered. Amstrad sells the device at a loss but makes up the money on call and other usage charges.

The main retail chains selling the phones are Comet, Dixons and Argos. The second generation of the phone, the e-m@ilerplus, is available for £29.