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Nov 7 9:30 AM EST

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To: Jules B. Garfunkel who wrote (713)	10/18/1997 3:57:00 AM
From: Mark Brophy	of 990

Re: Under-$1000 market The WSJ article on Compaq stated that on page B4: When Compaq started selling the cheaper machines, it didn't know whether their availability would expand the computer market or change it. But evidence is mounting that consumers are shifting their purchases to low-priced computers from the fully loaded, $2000 models they used to buy. This contradicts your assertion that, by cutting off DEC's and IBM's lifeline to new first time users, so is CYRX and AMD attempting to lure first time buyers to their new low cost products. I recently bought a complete used non-MMX Pentium that suits my needs for $850, including the drive, video card, and monitor. I think a first time buyer would be more likely to choose the safe route and go with Intel and/or MMX and/or a new machine. I knew exactly the system I needed at the cheapest price, whereas a first time user would be more likely to buy more than absolutely necessary.

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