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Technology Stocks : Corel Corp.

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To: A. Hayer who wrote (42)	4/25/1997 3:56:00 PM
From: Charlie Yang	of 9798

Does anyone know how much Corel will get for each WP7 OEM PC sale? I've never seen Corel has a press release on AGM, AST, or TigerDirect OEM agreement. And therefore I believe it may be a free deal in exchange for free marketing promotion. Am I correct? If so, here are my two cents on pros and cons: Pros: Get free ads and it will potentially help to reduce the marketing cost from 25mil to 15mil per quater. That is about 10mil profit or $0.14/share. Cons: Too much panetration and free pre-load full version of WP7 may hurt future WP8 sales. WP is mainly targeted to retail/consumer market and WP7 may be enough for an average user to stay with for 2-3 years. Quicken is making a SE version (Special Edition) of its full version famous personal finance program for bundling OEM deals. If it is indeed free OEM deal, what I suggest Corel to do is to create a SE version of WP7 as well instead of giving away WP7 too easily. I feel Corel is a little too aggressive sometimes and it in fact has hurt its bottom line and our investors as well. Still, I believe Corel has great products andd will get back to good profitability soon. Any comment? Charlie

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