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Technology Stocks : Dell Technologies Inc.
DELL 138.940.0%Dec 5 9:30 AM EST

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To: rudedog who wrote (143747)10/4/1999 11:53:00 AM
From: gnuman  Read Replies (1) of 176387
 
Rudedog, re: Markets and price elasticity
Think I have to disagree with your premise.
I think markets for products are very price sensitive, whether it be historically Henry Ford's Model T, or modern PC's.
Clearly PC penetration into the US home has been driven by lower prices, particularly into the low income segment. I think this is also true in countries like China, where per capita income is extremely low.
Moore's Law basically means MHz and performance enhancements are free. In fact, performance and functionality is increasing even while prices are decreasing. This is a commodity business, and competition finds little on which to differentiate it's products. Price is a driving factor. (Having said that, I think Dell and GTW have differentiated themselves in their distribution model, but they still must compete on price in new markets).
And using the automobile analogy, if there wasn't price elasticity in the automotive industry, everyone would be driving Mercedes.
JMHO's <g>
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