Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (13175)	7/31/1999 12:46:00 AM
From: Jing Qian	Read Replies (1) \| Respond to of 29970

Ahhaha, Thanks for the comment on lowering prices. Your point is valid on the monopolizing aspect of the strategy. However, I believe ATT and ATHM would analyze the pros and cons of a price cut. They probably can cut the price to an extent that would significantly increase the market share, at the same time not to be accused of dumping the market and killing the competition. There must be a delicate point at which this strategy can be perfected. ATT today as a cable operator is not in the same position as Standard Oil in 1903. Cable modem business is nascent and no matter how you look at it ATT is not a monopoly in this market, even by reducing the price to $20 would be hard to label AT&T as a monopoly with a mere 50,000 @Home subscribers. No body can claim AT&T is a monopoly even at 500,000 subscribers. So I believe AT&T would gain more with price cutting than the loss. Is my statement fair?