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Technology Stocks : AUTOHOME, Inc

ATHM 23.46

-1.2%

Dec 2 3:59 PM EST

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To: Jing Qian who wrote (13133)	7/29/1999 11:43:00 PM
From: ahhaha	Read Replies (1) of 29970

Ahhaha, AT&T or ATHM won't be the first company to reduce the price to win a bigger market share. They already have most of the market so how is this pertinent? When you have the lion's share and the market is nascent, you don't cut price. You might even raise it. That can't be done for appearance reasons. Att has enough bad PR going. AMZN cut their best sellers by half for a reason: Choking the competitors and grabbing the attention of more users. This is not accurate. They did it to preserve share. That's a far cry from choking. They know the competition is going to get some of the territory, so they try to hang on. They also did it because the competition was undercutting them and was taking share so they wanted to slow the attrition. Consider that if a buyer sees AMZN cutting their prices, wouldn't a buyer then be more inclined to shop around? That's what I would do and I'll bet that's what your friends do. It won't be too hard to imagine ATHM does the same. It is impossible. Why give up the serve if you haven't faulted? What share would lowering the price get? The share that makes Att a formal monopoly? This issue is not trivial, here in Fremont CA $39.95/month is the only reason 90% of people don't sign up for ATHM. ATHM doesn't agree with you. The problem with your straw poll is that it isn't representative. I don't mean in the adequate statistical sample space way, but in the way that the people you've polled don't know what it is they claim they don't want. It is just mindless prejudice against something new. Later they will deny they ever had such attitudes and they will think you made it up to make them look bad.

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