Although I am not 100% positive, I don't think the MediaGX offer includes a printer. If you subtract the printer, say $175-$200, the difference drops to $100-$125. I have'nt even compared software included. People tend to forget the value of software.
However, even at a $300 difference, a substantial portion of which can be attributed to the HP name and not only INTC's, it is an accepted fact that MANY people pay a premium for reliability and peace of mind in modern life.
Whether you agree with it or not, there are MILLIONS of people who drink Coca Cola, drive Toyota's, watch Sony TV's when there are PLENTY of cheaper alternatives like (private label sodas/water), Hyundai/buses) and (RCA/libraries). This is a fact and will remain as such barring a great depression or other human catastrophic event.
Fortunately, there are cheaper alternatives for the people who really cannot afford the best. MediaGX is one of them, just like buses and public libraries. However, if INTC successfully executes its segmentation strategy, I don't see much room for MediaGX, particularly as the war drags on and the losses mount. INTC shareholders should thank Cyrix for opening/testing the sub $1000 market at their expense. Now that it is a proven category, INTC faces less risk entering it.
Please don't take this as an insensitive response. I am merely stating what the market place is and do not see much of a change for the foreseeable future. Kind regards. |
