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Technology Stocks : Dell Technologies Inc.
DELL 119.95+2.1%10:07 AM EST

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To: Skeeter Bug who wrote (105673)2/28/1999 8:52:00 AM
From: jttmab  Read Replies (1) of 176387
 
Skeeter,

is the computer that you bought last year for $1k worth $900 right now or $700?

I don't think that is exactly the correct question. It's not what the computer is worth from year to year but the price of a system bought this year vs. last year. The system you bought last year for $1k is not likely to be the same system that you would buy this year. Besides configuration characteristics like CPU there are other items such as DVD. Last year one may have purchased a PC with a 32X CD today you might purchase a 5X DVD. I think that buyers have a certain price point and tend to buy as much as they can for that amount. For example, I tend to buy a system on the order of $2000; if the basic sysem is less than that, I'll "upgrade", e.g., larger monitor Jazz drive, etc. till I hit the my price point. The sub $1,000 units appeal largely to a newer market segment and overall lowers the ASP. An interesting question is what is the average life of a system and is that expected to lengthen as computing power increases. I won't go so far as to say there is a conspiracy, but there is motivation on the part of INTC and MSFT, et al, to ensure that the average life doesn't decrease...sic Windows 2000, Pentium IIIs, natural language speech processing, increased bandwidth, CPU/3D graphices intensive games, etc. ad nauseum.

Best Regards,
Jim
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