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To: Dave B who wrote (24495)	7/10/1999 10:38:00 PM
From: Skeeter Bug	Read Replies (4) \| Respond to of 93625

dave, the data supports 20% unit pc growth with about 1-2% revenue growth. that isn't, i think. that is the data. why do pc companies have to sell 20% more units to make the same dollars? because folks like your dad are going out and throwing money at them? money that, according to the data, the boxmakers don't want? no. that is ridiculous. they have to sell at a lower cost to spur demand. why? b/c everyone is upgrading to more expensive pcs? that doesn't jive w/ the fact of the numbers. a lower end pc to me is one about $700-$800. i can get an AWSOME pc for that. 2 years go and a $700 pc was a joke. now it is better than the average pc at the multibillion dollar company where i work. please xplain why, according to your view, pc revs are flat while units are growing 20%. also explain why everyone is beating down the door to give free pcs away for internet access. i'd argue that the supply of pcs is more powerful than the demand for pcs, thereby driving down the price of pcs in order to stimulate demand for boxes that didn't exist at previous price points. i'd also argue that the elasticity of demand is such that you get back fewer boxe sales for each incremental decrease in price. not good, imho.