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Technology Stocks : Dell Technologies Inc.

DELL 127.37

+3.9%

12:03 PM EST

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To: G.M. Flinn who wrote (32845)	3/6/1998 11:23:00 PM
From: Colin Campbell	Read Replies (1) of 176387

Cheap computers going cheap two for the price of one!. Listen if people think that $1000 is not a lot of money they are high let me point out something. Once apon a time consumers were stupid it happens in all new tech advancements but they get smart very damn quickly. If someone is going to pony up $1000 for anything they spend some time working out what they have got. If people think that consumers are fooled by the $1000 PC ( real cost $1,300 ) they are so wrong. Think who buys computers. a) Companies. If you buy a computer it counts as an asset on your balance sheet. you can depreciate it at 20% per year. Thus it takes 5 years to write off the cost of that computer as a business expense. What does this mean. It is cheaper to buy a higher priced computer that may have a lifespan of 5 years than a $1000 PC that lasts for 1 year. b) Home users ( still a small but fast growing percentage ). Have you ever been to any store that sells computers. I have shopped for about 20 PC's in my time (I am a programer and have my own small company). I have have shopped at all the major stores. I have never met a bunch of less educated sales people in my life , if you buy a car the dealer at least knows that it has four wheels and an engine. Only the very uneducated buy a computer from a general computer store and they only do it once. The general public are very aware that they may be getting a system that will go out of date very quickly and leave them hosed, at the very least any kids they have will tell them this. I know that most people will pay twice or three times the cash for a better product that will last longer. Explain the argument of lifespan to a consumer and they will understand. I will not buy an 87 chevy even though it's one third the price of a new one. Every computer manufacture will come to this eventually. Let Network computers and cable boxes take the sub $1000 market as they will and get in to the high end with low inventory. CPQ will learn this lesson, DELL already has but I really like both companies long term. Hey is the world going to stop buying computers.

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