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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: ptanner who wrote (95065)	2/24/2000 11:30:00 PM
From: Joe NYC	Read Replies (1) \| Respond to of 1578006

PR Re: Dell price disparity Maybe Dell has a limited supply of RDRAM at fixed prices, and is limiting it to the business line. Maybe they buy some on the grey market, and use that price for the consumer line. But the question is: why favor business over consumer lines? Another question is: why sell RDRAM below market price. As a result of the fix price contracts, dell has an unrealized gain of $500 on each 128 MB of RDRAM. Why do they give it away? And why give away the 800 MHz CuMines for which Dell probably pays $500, when they can be sold for $1000 in the gray market? Dell could make $1,000 just by selling per each combination of 800 MHz CuMine with 128 MB RDRAM. I guess this is something for Dell shareholders to think about. I wonder if buying marketshare this way will turn out to be worth it in the long term. Joe