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

To: gnuman who wrote (143772)	10/4/1999 3:07:00 PM
From: Jean M. Gauthier	Read Replies (1) \| Respond to of 176387

Wonderful performance for Dell stock today, on a major UP day... Very impressed... :( Take care Jean

To: gnuman who wrote (143772)	10/4/1999 3:33:00 PM
From: rudedog	Respond to of 176387

gene - In general, your points are well taken. I don't think that prices are coming down across the board because of market share competition - that would imply margin erosion, which we have not seen outside of the very low end. E-machines and a few others are making the claim that very low price would drive additional demand, but the actual sales have instead displaced white box makers primarily, without generating a lot of new demand. I agree that market share is driving some pricing action in that space. Even in the saturated markets, I believe that share (either protecting it or grabbing it) is driving the price action. It is traditional to try and churn the base by offering compelling features, performance or ROI to induce existing customers to replace their systems. There is certainly untapped demand in home use. CPQ made a run at that base with a bet on home networking (all of the machines shipped this year support 2 flavors of networking using existing wiring, either phone line via TUT or power line modems). This has not received broad acceptance. The E-machines approach - get basic functionality so low in cost that people will buy a second machine rather than share a more powerful one - has also not worked as well as desired, although there is reason to think that one of the low cost or free schemes will eventually break lose that market. I had one of the early altair machines in 1976... and I had been working mainframes and minicomputers for nearly 10 years before that. No wonder my memory is going, hand me my walker please.