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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 95.45+1.3%3:59 PM EST
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To: pompsander who wrote (24361)7/9/1999 1:30:00 AM
From: J_W   of 93625
 
When IT departments go out to make large departmental buys of hardware, they buy to a spec that will meet their needs for the foreseeable future. As Ten points out, that is why many customers buy the 550 megahertz pentium instead of the 450 - despite the seeming lousy cost/benefit ratio. Dell lives on this fact of life in its corporate accounts.

Pomp,

Also keep in mind these corporate buyers are buying in quantity. They are not paying full retail. So the difference between 500 and 550 is in all likelyhood also less than what a retail customer would pay.

(This has been fun today)

Regards,

Jim
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