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Technology Stocks : Intel Corporation (INTC)

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To: DownSouth who wrote (59797)	7/12/1998 4:53:00 PM
From: Steve Porter	Read Replies (1) of 186894

Downsouth: The problem with the theory that: The pricing wars has brought a whole new segment of users into the market sooner that could have been predicted without the wars is that it just isn't true. I remember seeing a lot of reports. People buying the cheap PC's aren't usually first time buyers. They are folks who realize that PCs are obsolete the minute you plug them in. I seem to remember reading in an article that only 10% of sub $1,200 PCs go to first time buyers. That's the problem. If it had expanded the market then I don't think any of these companies would be in trouble. The problem is that it forced the existing market into a lower price bracket in general. If the market were expanded, PC sales growth would be INCREASING instead of DECREASING as it is now. Steve

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