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Technology Stocks : Compaq

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To: StockMan who wrote (6724)10/16/1997 3:02:00 AM
From: Kai-Uwe   of 97611
 
Stockman:

Not to harp on you continuously - but if your statement was true why would intel complain about higher production costs?

Trust me, intel is not dropping their prices lightly, the fact that they are doing so also shows that they do not have a competitive solution to offer in the low-end category.

A P54 166 is not an option for those consumers willing to compromise enough in entering the sub $1k PC market. Those guys seem to think they need MMX, etc. It's just a marketing fad. Ironically one created by intel themselves...

The fact that they are dropping their PII 300's for example is interesting to note as well. Why do they drop the price on high $ micro-Ps if they are already hurting due to higher production costs (as per their press release)?

intel simply underestimated the sub $1k market (just like IBM) - and are now paying the price. In the long run however people will realise that these half-baked machines in comparison to the high-end PCs will not cut it, and will have to switch back to intel for the lack of any comparable alternative out there.

K.
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