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Technology Stocks : Adaptec (ADPT)

ADPT 15.45

+0.1%

Dec 12 3:59 PM EST

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To: Charlie Smith who wrote (869)	1/16/1998 11:19:00 AM
From: The Philosopher	of 5944

<<What I don't yet understand is how a $1400 price point (down from $2000) for a typical corporate PC cuts into host adapter demand. $2000 machines normally don't have SCSI adapters to begin with, so how could lower prices hurt demand? >> Speculation, not based on fact: when a full function PC cost $2,500 and a SCSI computer cost $3,200, the difference for many business users was small enough to justify the higher level system. But when a full function Pentium is available at well under $2,000, the math changes, and people may go for lower end over higher end. I haven't seen the top tier of machines drop in price as much as the bottom tier, so the spread has increased. I put this out for discussion as a theory only--comments?

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