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To: Skeeter Bug who wrote (24469)7/10/1999 1:45:00 PM
From: Dave B  Read Replies (1) | Respond to of 93625
 
Skeeter,

i think replacement schedules are getting pushed out and pushed out as performance is darn good on a sub $1k box and even better on higher end systems.

And here's where we go down the proverbial rathole, because I think they're not and, as I just gave you a concrete example of my father who will not be buying another low-end machine, performance is not darned good on low-end boxes. Because people want to use it for more than what they originally bought it for and that's when they run into trouble. That or they run into quality problems. They'll either upgrade or the low-end box will end up in the closet and they'll get out of the game (and thank you very much for playing our game for the low entry fee of only $399!).

I "think" and you "think". We'll just have to see what happens. You know, I "knew" that Packard Bell was going to go down the tubes 2 years before their numbers started declining. I was consulting for a HDD company that sold a lot of drives to PB and at the time I suggested that they not prioritize PB above their other customers. Two years later PB tailed over and has now effectively disappeared. Eventually my client still had to write off some $ PB owed them. How did I "know"? I was on a listserv group where someone asked for a PC recommendation. Packard Bell was the high-flyer and low price product at the time, but while a couple of recommendations came in for each of the major PC vendors, about a dozen responses said "don't buy Packard Bell". Poor quality, poor customer service, etc., etc., etc. So what's my point? I learned at that point that even if people don't pay much, they still expect quality, service, and a timely response. The low-end machines can't provide that on the slim margins they get (e-machines doesn't even offer support!). They'll get a bad reputation and there will be nothing they can do to get it back. My father would not recommend a Microcenter system to anyone right now, if asked.

Be patient. The low-end systems will get there, but it will take longer than we really think. The current crop of low-cost machines will disappear in a couple of years and will be replaced by companies that will bring down the low-end price point on a schedule that allows quality, service, and support while still supporting a profit. Because you can only throw so much money down a hole before you run out of money, and the backers of the low-end companies will not keep funding them forever with no profit to show for it.

Dave