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Technology Stocks : Apple Inc.

AAPL 275.44

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10:31 AM EST

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To: David Semoreson who wrote (9608)	3/17/1998 2:14:00 PM
From: Keith Howells	Read Replies (3) of 213176

David, I agree that Apple has a great deal going for it, more than just the PC business. I must say that their PC business does cause me some amount of worry though especially since they are going in to the lower margin, cheaper computers. I had a few shares of CPQ, my thought being that the low end machines would generate new users. People who previously never owned a computer. What a great way to expand your market. What actually happened is something entirely different. The lower end computers killed CPQ margins. Dell on the other hand stuck to their business plan and seem to be doing rather well. I am not sure what the right course of action is for Apple. Go cheaper and try to grow or stay the course and rely on building the better mousetrap to attract converts. Either way, Apple has a lot to consider especially if they want to maintain their position in the marketplace or grow it, as I'm sure we shareholders would like to see. I would be interested in your opinion, or anyone else's, on the course of action Apple should take regarding this portion of the business. It may not be the only club in the bag for them, but I think it's the most important one. -Keith-

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