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To: John F. who wrote (3275)	5/15/2000 4:40:00 PM
From: DownSouth	Read Replies (3) \| Respond to of 10934

John, I am not sure what EMC could "mark down" as INTC did with old chips. EMC is not in the enabling technology business as INTC is. EMC sells systems, most of the components coming from third parties. The tactic I was referring to is the markdown of a proposal to a specific customer to an exceptional, even unprofitable price in order to keep out the competitor, while keeping list prices quite high. Making such decisions is very difficult, requires a lot of management bandwidth and can erode prices overall when done frequently. I saw mainframers do it to keep out minicomputers and minicomputer manufacturers do it to keep out PCs. What they were not able to do is offer the minicomputers and PCs to keep out the competitors. A classic example of one aspect of the Innovators' Dilemma.