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Technology Stocks : Compaq
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To: Tom Aellis who wrote (8840)11/12/1997 1:02:00 PM
From: VinWood  Read Replies (1) of 97611
 
Re:"A nagging concern, though, is whether the cheap PCs will simply cannibalize sales of the pricier models."
I think this is already happening. I visited the local Fry's yesterday and noticed that most of the "pricier models" where now down around the $1000 mark. I also noticed that the cost of the whole system is less than the sum of the components. Which makes me wonder how the component manufacturers can sustain their revenues.
There is no need for IBM etc.to initiate manufacturing of a sub$1,000 computer, their existing models will soon be sub$1,000 by necessity.
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