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Technology Stocks : The *NEW* Frank Coluccio Technology Forum -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (6497)	5/28/2003 8:14:51 AM
From: Peter Ecclesine	Respond to of 46821

Hi Frank, I normally get up at 4:30, but am up early this morning. Thinking about "Planned obsolescense is the management style most prevalent in large U.S. companies," especially networking companies ;-) The BCR folks failed to note consumer expectations drive the operating model. 1)If the return rate of white goods is 8% (like at BestBuy). If 15% of units shipped ($100 a unit) generate ten minute support calls, then the cost of the support call must be < $10 to be in that business. 2) If Pelefon is profitable with a $36.98 ARPU ~= $0.027 revenue per minute, then what must be the cost per minute? and how is that achieved? Price is perfection petere