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Technology Stocks : eMachines IPO - the next DELL?
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To: Bill Jackson who wrote (7)7/27/1999 9:42:00 PM
From: J. P.  Read Replies (1) of 11
 
I see Compaq's lawsuits as a desperation move and a death throe. I don't have the details, but I think emachines makes a razor thin margin on their machines, and you may be right they may get some from the ISP's.

So, say emachines is found guilty infringing on patents and they're knocked out of business. It doesn't change the fact that this model is the one that's going to succeed. The untapped niche is the people who otherwise couldn't afford a PC or don't need a high end machine. Dell and Compaq can't effectively compete in this space at these low margins emachines is willing to take. The money is in the software and ecommerce, not in the hardware. So if they knock emachines out of the box, so what, another will spring up amoeba-like to take it's place. It doesn't necessarily have to be emachines, the concept is what is valid, and all the lawsuits by Compaq or Dell for that matter won't make that go away.

Jim
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