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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Dwight E. Karlsen who wrote (12130)	12/11/1997 4:19:00 PM
From: Mang Cheng	Read Replies (1) \| Respond to of 45548

Dwight, I think the reason for COMS to do relatively well today is because of an article in WSJ-online about sub-1000 pc. With sub-1000 pc flooding the market, it's good for COMS, ASND, and AOL etc. but bad for PC makers. Just check the quote of COMS, ASND, and AOL today. AOL is particurly storng today, up 2 something. The following is an excerpt from the wsj article : ************************************************************** Nearly a year after the sub-$1,000 market began to take off, the segment continues to be the fastest growing category of personal computer. According to PC Data Inc., a market research firm, sub-$1,000 computers made up 39.1% of retail PC sales in October, up from 7.1% of sales a year earlier. And during the same period, sales of $1,500 to $2,000 machines slipped to 20.3% of the market from 37.9%. Machines selling for $2,000 to $2,500 fell to 4.2% from 16.4%. But Otellini is right. When it comes to evidence that these inexpensive and still very capable machines are broadening the market in the U.S., conclusive data are hard to find. Still, the question is a key one. If more households are buying computers, enticed by low price, the impact on companies such as on-line service provider America Online Inc. (AOL), for instance, and networker 3Com Corp. (COMS), which sells modems, could be significant. .... Also of note, about one-third of households will have more than one personal computer, up from 20% at the end of last year. "I think we will find concrete evidence that this is expanding the market," Ablondi said. "My gut is telling me the $1,000 price point is grabbing their attention (even if they are) going to go in and spend more." One often overlooked consequence, Ablondi added, is that the sub-$1,000 machine is eating into the market for used computers.