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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: John Koligman who wrote (23543)	11/29/1997 8:18:00 PM
From: Boplicity	Read Replies (1) \| Respond to of 176387

John, Re: I'm writing this on a 486/DX2 PC bought in 1993, and it runs my real time quote system and the Internet just fine! Sure it does, but after next years introduction of 100 MHz bus, your 486 will be obsolete big time. Once we have increase band width, not only coming in though xDSL or cable modems, but also in handling the data internally, you will be have PC envy big time. Try running real time quotes, Internet and an incoming Internet video call at the same time. Next year with the introduction of Windows 98, we will finally be able to have two screens. Plus DVD will be become standard. And your wrong about scanning, it will become as common as a printer, heck it will come with the printer I see this more and more. As far as Office, better be a small office they are going to use it in. The point I was trying to make with me original post was that the Sub 1K computer is creating a whole new group of PC users. Those users will become knowledgeable and be exposed the ever expanding power of PCs. Some of those users will want to upgrade, since the spent so little the first time they will want to spend more the next and get something more powerful, something that will last more then 1 to 2 years. Those are the PC buyers DELL wants to get. Greg

To: John Koligman who wrote (23543)	11/29/1997 9:28:00 PM
From: Meathead	Read Replies (2) \| Respond to of 176387

Let me just state for the record that I for one don't believe the 1KPC's are instantly obsolete. They are more than enough for most average home users. Their lifecycle will vary greatly from one user to another depending on how sophisticated their application preferences become. Make no mistake, the low end boxes can NOT run many of the new and emerging 3D gaming and productivity applications very well at all. Their performance is very disappointing. These apps will be quite commonplace in a few years. But for Win95, office97, surfing the net, email, 2D games etc. these are fantastic machines. My point is that these are not corporate desktops. They aren't designed to work optimally in networked environments. You can't just slap a 3COM network card in an ISA slot and have the equivelant of a system that was specifically designed to live on a corporate network. Just one of many differentiators like managability. It has little to do with processor speed or memory size. You wouldn't buy a 4dr touring sedan to go "off roading" would you? The fact that you can buy a Geo Metro cheap has not seriously impacted the ASP of a Ford Explorer has it? It can be argued that they both perform many of the same functions and are both considered automobiles. ASP pressure on enterprise systems won't come because corporations will be able to satisfy needs by buying these low priced consumer products. It will have to come from somewhere else.. and from what I can see, margin pressure is still coming from traditional sources like good old head to head competition. A few of the possibilities I would like to discuss are, 1. Should Dell try and compete in this segment? Why or why not? What advantages/disadvantages would their business model create? What effect would it have on profitability and growth? 2. Will the 1KPC continue to canibalize the mid/upper range home sales or will it level off after initial demands have been satisfied? Does it have the potential to displace sales of some business class machines? 3. Will the 1KPC grow the home market WW to the to exceed the size of the corporate market? How long might it take? MEATHEAD