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Technology Stocks : Gateway (GTW)

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To: jas cooper who wrote (4529)11/3/1997 9:39:00 PM
From: wolfdog2  Read Replies (1) of 8002
 
Jas, GTW has screwed up not a little but a lot. The comsumer PC business is now comoditized. The corporate business is owned by CPQ, Dell, IBM, and
H P. Article in today's NYT pointed out that those four are grabbing more and more of the corporate market share. The little guys (and this would for sure, imho, include GTW) are being forced out.

Imo, GTW waited too long to make its move into the corporate world. GTW may be increasing revenues, but they don't seem to be able to do it profitably.

Also where is their $1000 computer? I looked at their web site yesterday. They have a package deal for about $1499, if I recall, which includes a printer and moniter. Not a bad price. But do CPQ and HP know something that GTW doesn't? Why do they offer $1000 computers without moniters or printers?

I think that GTW hasn't yet caught on that to compete, you have to offer a computer for $1000 or under. CPQ sells one for $799 without moniter. Sure it doesn't put a candle to GTW's $1499 machine but so what? When Johnny-short-of-bucks looks to buy a computer for his kids, or maybe a second computer for himself, he's going to go to CPQ not GTW.
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