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Technology Stocks : Stock Swap
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To: Kachina who wrote (16094)1/20/1999 3:23:00 PM
From: Trader X   of 17305
 
It represents a swing in marketing to consumers.

The old model of bigger and more powerfull had worked on about all of the market it was going to, and the next logical step was to infiltrate the economy sector of the market with cheap machines.

Once you have that market sewn up, you start selling them on the need for bigger/more powerfull. Now that they have been trapped into buying, they can't resist buying up to models with features.

It's a psychological game of perceived need that works in most vertical market product sectors, why not computers too? Watch E-Machines. In the next product cycle they will introduce consumer products that have more power, speed, features. It worked for Honda.

TX
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