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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Mike M2 who wrote (58994)1/18/2001 1:42:02 AM
From: GraceZ  Read Replies (2) of 436258
 
Look at GTW first loss in the company's history yet the computers they sell perform better and cost less.

Some goods and services in the economy are on a track approaching free, while other prices are rising disproportionately. This was my point in my original post which got lost in the productivity debate. While great for consumers, it's not great for corporate profits. The problem is that while the computer and technology sector has adjusted well to continually declining prices, there is a point where they can't anymore and their resulting margins suffer. At that point consolidation in the sector will need to occur to return pricing strength. Primarily because the companies are affected by those same expenses that are rising so rapidly for consumers......healthcare benefits costs for one, energy for another.
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