Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: derek cao who wrote (43491)	12/31/1997 2:40:00 PM
From: Joey Smith	Respond to of 186894

Derek, this was reported in today's WSJ. joey

To: derek cao who wrote (43491)	12/31/1997 4:04:00 PM
From: Meathead	Read Replies (4) \| Respond to of 186894

Re: 40% OF DEC PCS SALES WERE UNITS PRICED UNDER $1000. I've seen a couple folks mis-interpret this... To be clear, 40% of retail sales went to the sub-zero segment in December. Is this statistically significant and what does it really mean? Using WorldWide Q4 PC shipment numbers from last year to calculate a simple ratio can give us a quick clue. Assuming that most retail purchases are for home systems.. Q4 96 Total units = 20.7M Home units = 6.5M This means 24% of all PC sales were to the home user who typically shops retail at the CompUSA's and BestBuy's of the world. 40% of 24% is 9.5%... thus we could extrapolate that 1 out of every 10 PC's sold in Q4 of this year was classified as a sub-zero. Is this cannabilizing sales of higher end systems?? Not likely. It's displacing itself as it was previously defined by last year's $1250 PC price point. Nobody has a mental debate with Gee, do I buy Lexus or Mercedes?... then settle for a Kia Sportage. Point being, and one that's been beaten to death on many-a-thread, is entry level elasticity at the low end is bringing in new class of participants while driving PC's into every room in the house. Would anybody on this thread replace their current system with one of today's sub-zero offerings? Have you used one yet? These things are truly toys... good for the kids or a newbie. No more than you'd replace your 92 Camry with a 98 Geo Metro. MEATHEAD