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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (57117)	4/23/1999 11:27:00 AM
From: Dave Feldman	Read Replies (1) of 132070

Michael, Re: sophistication and Gateway/Dell I think you can make analogies between the auto business and computers. With autos, one might assume that the BMW customer is more sophisticated than the Geo buyer. And in many cases, one would be right. But in the computer field, there will always be many folks who are extremely knowledgeable techically. To those people, Dell and Gateway will always be overpriced duds, the equivalent of the Plymouths their parents would drive. I've talked to quite a few buyers for businesses and to the person they sing the praises of Dell. The two big issues with them that make them buy Dell -- reliability of the machines (NOT performance) and Dell's willingness not to nickel and dime them when there are service problems). But I don't think Gateway is as low-end as you say. Their "psychographic" seems closer to Volkswagen/Snapple/Land's End -- a deliberate strategy to be anti-hip, anti-extreme hi-tech. Dell buyers feel that they have made a sound purchase. Gateway buyers feel happy about their purchase. I think the real low-end is Value-Vision, and the PB system at Staples, not Gateway. DF

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