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Technology Stocks : Gateway (GTW)
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To: Skeeter Bug who wrote (5070)12/17/1997 11:25:00 AM
From: Karl Stearns  Read Replies (2) of 8002
 
Yes, this is always a good ploy for people who are quick to grab at price. However, I still maintain (without looking at the configs at present) that Gateway packs more guts in their boxes. That point may be lost on "price shoppers", but not to serious buyers. Gateway and Dell will both do a great disservice to the market by trying to capture the crowd that runs to CompUSA to buy a sub-par Packard Bell or Acer computer. I'll bet any money those folks will never return to those brands when they decide to get a serious system. Gateway and Dell need to continue to focus on building high-quality, high-end systems for the people who depend on computers to run their businesses and perform serious work even in a home-user environment. Right now, Gateway has allowed Dell to blindside them in the server market. They need to step up to what Dell is putting together and battle them head-to-head in THAT market.
The value of Gateway stock cannot hinge on cheap boxes to appeal to the mass market. If they want to do that, they ought to spin off a seperate division and let it's fortunes rise or fall on catering to THAT market. The high-end user will always know that a cheap box ain't gonna perform in their environment. If Gateway or Dell acquire a "cheaped-down" image, they'll lose the best of their customers--the high-end users who regularly upgrade and purchase lots and lots of systems.
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