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Technology Stocks : Gateway (GTW) -- Ignore unavailable to you. Want to Upgrade?

To: wolfdog2 who wrote (4761)	11/17/1997 12:54:00 AM
From: Jet.Screamer	Read Replies (2) \| Respond to of 8002

I hace been lurking for some time and have owned Gateway since shortly after the IPO. I bought GW2k for no other reason than the positive things I had heard about them from my brother a corporate computer guy. Several months after that I bought my first computer which happened to be a CompUSA computer that I oredered over the phone.. I bought from CompUSA based on price only and although I did not receive the exact price I was quoted found the system to be reliable for the first 3 years, and close to reliable for the remaining time that I used the system. When I bought my second system it was a GW2K, and the rpimary factor for my decision was the reputation of the customer service-this was the opinion of other family memebers who owned GW2K systems. My customer service experience confirmed this good reputation since my problem was caused by software I installed and the service rep. worked with me for over 3 hours to find and fix the problem. BTW my CompUSA system did not even come with a phone number for customer support. My experience with GW2K customer support gives me a tendency to be a l0yal customer and to reccomend their systems to first time purchasers. BTW I have encountered less the friendly customer service reps at Gateway. I also own CPQ and would never consider selling it althougth I do sell Gateway for liquidity and buy when I feel the time is right. BTW I am not trying to hype Gateway because since if need be it would the first to be sold. I would never recommend purchasing a CPQ due to their horrendous customer service policy that has recently changed. Anyway my point is that their is more to the purchase of a computer than the price and although CPQ may be getting the sales now if the customer support is inadequate they will not get the repeat sales. Gateway has, to my knowledge, the highest loyaly among consumers( correct me if I am wrong). This may not seem like much to those who focus on price competiveness alone however it may be more important than you think. Brand loyalty is why people buy Kleenex as opposed to some other facial tissue that costs considerably less. Like wise they buy Q-Tips as opposed to some other cotton swab that costs less. I am not hawking Gateway since I think their inventory management is pathetic compared to Dell and CPQ and this is destroying thier profitability. However you can not discount brand loyality and it appears to me that this is may be the major focus that Ted believes the company should pursue. As for any comparison between Gateway and Dell the only thing they share in common is direct marketing how they go about it and what market the pursue are very different. I could say more but feel I have rambled on for too long and if anything I have said is incorrect then please correct me. jds

To: wolfdog2 who wrote (4761)	11/17/1997 9:25:00 AM
From: Cosmo Daisey	Read Replies (2) \| Respond to of 8002

WD2, Today the CEO of CPU (what a dork) announced their entry into the sub 1000 market, thats right, he called it the sub 1000 market. The interviewer didn't know what he was talking about. When it became clear that he was talking about a computer from CPU at less than $1000 then the interview got interesting. They are feeling pressure from IBM because of their $999 full featured PC. When pressed he revealed plans for a under $500 PC in the near future from the major brands with a scale down of features but a fully functional PC that would fill the bill for most first time home users. Last week on CNBC they were talking about a Cyrix based under $500 computer with full features necessary for plug and surf that home users are looking for. The WebTV is dead, the $500 PC is around the corner. GTW hasn't announced the price step to $999 yet and the majors are already talking about the next step to $500. This is going to be interesting. Wolf, I don't think the $500 CPU will be the same as the $1355 machine you just bought but who knows in this deflating PC price war. Coz