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Technology Stocks : Hewlett-Packard (HPQ)

HPQ 24.76

-2.6%

Dec 12 3:59 PM EST

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To: MeDroogies who wrote (293)	5/9/2002 6:37:04 PM
From: BelowTheCrowd	Read Replies (1) of 4345

Many of the retailers are effectively using PCs as a "loss leader" to bring people into the store, knowing they'll be able to upsell them on everything from Anti-Virus software, to speaker upgrades, to 50-packs of CD-R disks. Just like camera retailers, who are happy to sell you a Nikon at cost, because they know that 95% of the time they'll sell you on an "essential" skylight filter for $20, which they purchase in bulk for pennies. In computers where there's also software in the mix, the opportunities to upsell an otherwise money-losing product are almost infinite. And I would not question for one second that a company like Wal-Mart has the ability to create their own brand if they want to. Their name is strong enough, and they are an increasingly large share of the retail PC market. mg

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