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To: D. Swiss who wrote (153687)	2/11/2000 1:20:00 PM
From: rudedog	Respond to of 176387

Drew - re: at some point the industry has to wake up and realize that no one wins in a price war. I have said this before but let me stress it - THIS IS NOT A PRICE WAR!!! These are not LOSS LEADER products!!! The ASPs are not dropping because of cost cutting - they are dropping due to the introduction of a new class of desktop product. Look how IBM and CPQ are doing in the PC business That is exactly the reason that IBM and CPQ (and HP) are moving in this direction. The goal is to improve margins and reduce revenue dependance on PCs at the same time. The reduction in desktop ASP is almost incidental - the real goal is profitable business. Let me say that again - it seems to be something you are missing. The goal is to improve margins not reduce them, this is not a price war.

To: D. Swiss who wrote (153687)	2/11/2000 1:21:00 PM
From: D.J.Smyth	Respond to of 176387

"rudedog, at some point the industry has to wake up and realize that no one wins in a price war. The industry must return to rational pricing" there is no "real" price war. it is a war of functionality vs. price. if suppliers can't supply all that is demanded of them; they aren't going to lower their prices, and conversely, the end unit's price is not lowered either - what remains is a decrease in functionality for a lower price. you want higher functionality, you pay a higher price. "price war" is a myth