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To: Boplicity who wrote (20971)	11/10/1997 12:21:00 AM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Gregory, Meathead has it right about the development of new market segments. It's a little early to project the sizes of these segments in terms of units and ASPs. But we should be looking to do that. We have the following application specific PC products now: Low Cost PC ( Modem Connectivity required) + 2 GB DD NC (Ethernet Connectivity required) Net PC (Ethernet Connectivity required) + 2-4 GB DD Consumer Desktop PC (Modem Connectivity) +2-4 GB DD Corporate Desktop PC ( ethernet connectivity required) + 4 GB DD) Financial Workstation ( ethernet connectivity + Dual headed Monitors + 4 GB DD) CAD Workstation ( ethernet connectivity + 2D + 3D graphics + 8GB DD + Big monitor) Low end Server ( ethernet connectivity + 8GB-12GB DD ) Mid Range Server (Multiple Ethernet port connectivity) Personal Laptop ( Modem Connectivity required ) Corporate Laptop (Modem Connectivity required ethernet connectivity required for docking) This is just an abbreviated list to give you some idea of the diversity in the PC products. So there is no way the low cost PC can fill the shoes of its big brothers. However, there will be continuing price reductions in the future. There is as yet no evidence of margin shrinkages amongst the top tier PC manufacturers. Regards, Jim Kelley