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Technology Stocks : Compaq

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To: Dwight E. Karlsen who wrote (9924)12/1/1997 5:00:00 AM
From: ed  Read Replies (1) of 97611
 
From your post, I would say that you just closed your eyes and ears never like to listen and see what is happening in the real world.
First, I would like to ask you couple of simple questions, i.e , how many
families in the United States do not have at least one TV sets at home nowadays? And what is the money you paid for your latest TV sets?
How many families in the United States do not have at least one car in the family nowadays? What price the average family paid for their cars?So, just think !!! You told me that the majorty of people in this world had never used a PC because they can not afford the luxury, I just do not buy this statement at all if we now have $500 to $1000 PCs available for
consumers to make their own choice. Yes, with PCs priced at $3000 or over, most family can't afford , and that is the reason I said it is a piple dream for DELL to imagine that when the first time buyers upgrade their systems, they will choose Dell's high end models with higher price. For common people on the street, the high end now is $1000, and the loww end is $500. Any price higher than that will not sell to the majority, but
few professionals who need that additional power for special applications, such as circuit simulations. Do you really think those
who bought a Honda will upgrade to a Benze for their second cars ?
I do not think so, but maybe few of them.But here, we are talking about the
market of majority consumers, not just few special case.

I agreed, the PC market are always driven by applications, which means
people need these applications in their daily life, and followed with
a price drop so that more and more people can afford and the market
expanded significantly! People buy cars because they need to drive to
work , to attend appointment with girl friends, and the average price
are much higher than the average price of sub $1000 PCs. People bought
TVs, because they need entertainment and the current price of TVs is
probably little bit lower than the average price of sub $1000 PCs. So,
the affordability of sub $1000 PCs is not a issue anymore if we compare the models with that of TV, and cars, the issue is wherther
there are enough applications or needs to attract the buyers. And we also know
that not too many people spend more than $2000 to buy a 40" big screen
TVs or more than $60k to buy a benze, and the low and middle ends are
the choice of most people, i.e $500 to $1000 for PCs.

As for the applications, I think you probably know that the international network shopping will come which were pushed very hard by Clinton.The Video phone will be available on PCs, the e-mails,The
home entertainment ctrs, the remote diagnosis, the remote data access
(for article, electronic newspaper, magazine, paid movies) ...etc,
to benefit from all those, you have to have a pc at home, and you price
is only $1000 at most!!!!!!!!!!!!!!Those who can afford to spend $300
buying TV set (Only function as a TV) can afford spend $300 to $500 more to buy a PC with so many excitting applications available. And
those who can afford to spend $500 for TVs can afford another $500
for a high end sun $1000 pcs. So, the PC market will be at least as
large of the TV market if we can offer the consumers with sub $1000 pcs for their choice. As for DELL high end PCs, it is just a piple dream that people will upgrade to high end with at least additional $1000
premiums. Most people at home are not computer professionals or circuit designers , and lot of them probably did not even what "MMX"
is !!!!!!!!!!!!

As to your friend, a self employee who hired two or three employees and spend couple of hundred dollars to hire a tax consultant to do
the tax every year and do not want to spend $1000 to buy a PC to help
enhancing the productivity, my suggestion to him is "close the door"!!

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