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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: gnuman who wrote (143761)	10/4/1999 12:54:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176388

gene - I am not saying that there are no elastic markets. A freeze in the citrus growing areas which reduces orange harvests will drive up the cost of oranges in the market pretty directly. Likewise a bumper crop which drops the price of oranges substantially will stimulate people to consume more oranges. My assertion is that PCs are not oranges and this simplistic supply / demand relationship does not have much application to the computer business, and I have just posted an analysis with some thoughts to support that contention. Let me know what you think. As far as competing on price, either in new markets or in existing ones, this is a battle for share and IMO has little to do with creating demand. There is a fair body of research showing that demand in new markets in technology sectors are little influenced by price - after all, how much should a palm pilot cost when there is nothing to compare it to? None the less, big fast followers sometimes buy share from the innovators by pricing low. after all, they don't have the same R&D costs to recover.