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Technology Stocks : Gateway (GTW)

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To: Bob Frey who wrote (7277)	7/28/1999 11:42:00 AM
From: Ramsey Su	Read Replies (1) of 8002

Bob, I have been thinking about exactly the same issue and it is not only applicable to GTW but the whole sector. ISPs and boxmakers are invading each others' territory. So a smart consumer TODAY should be able to get a free box with an ISP committment or get free internet hookup with the purchase of a box. What is likely tomorrow? How long would it take for the average consumer to figure out that they should cancel their internet hook up now and reconnect at the same cost, while receiving a free PC for the trouble. Once this type of price competition starts, there is no end because neither boxes or ISPs are such proprietary products that they can escape the vicious price fluctuations of a commodity. I guess I am seeing a losing business model for the industry. How are these companies, be it AOL, GTW or DELL going to make money going forward? Ramsey

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