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Technology Stocks : Gateway (GTW)
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To: Tmanquinn who wrote (4907)12/3/1997 10:35:00 PM
From: Skeeter Bug  Read Replies (3) of 8002
 
>>With ASP's
steady, revenue will increase.<<

is this voodo economics? the fact is that the relative price of gtw in INCREASING DRAMATICALLY. it is 50% more than an hp that you can buy in the store. sure, the gtw is about 10% better due to expandability and the like, but there is 40% extra that nobody smart will pay.

those sales that would have gone to gtw will now go to hp. dell and gtw ARE NOT the same company nor are they even close. cpq is growing units 2 times as fast as gtw even as we speak.

i expect gtw to make a LITTLE money, but to say they will make a lot more b/c they don't lower prices just isn't accurate over the medium term.

gtw computers are not immune from elastic demand. that is voodoo economics. demand will go down as relative prices increase.
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