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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Len who wrote (12559)	12/11/1999 10:41:00 AM
From: FLSTF97	Read Replies (1) \| Respond to of 54805

I agree that there are many solutions to a problem. Reducing the price does not reduce the production costs and may delay their ability to spend enough to reduce costs fast enough. If you already sell all you can make then how do you use price reduction to sell more? Are companies really willing to accept leadtimes for these devices of say 2 years? In telephones that must be 2 product generations. They could conceivable build backlog, but building demand and not be able to fill it, probably helps the competition more. I think that there are right reasons to reduce the price, but it was not apparent to me they had it. Unclewest proposed that they dropped the price only on raw wafers and for a strategic reason. Now that is smart thinking, assuming he's correct. Fatboy