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To: Eric Yang who wrote (7424)	1/7/1998 11:56:00 AM
From: Doug Smith	Respond to of 213173

Eric Looking at the specs for the G3 powerbook, which you no doubt are aware of, we can only imagine that this is a corporate machine. But even the pricing on older models such as the 3400 are not dropping as I thought they would. Not only that, consumers are not going to buy expensive machines which use the old processor when the G3 is all the rage. I expect that the online store could do a bang up business selling stock under the Sale catagory if prices for the main street machines which are pre-G3 are lowered. But the cost would have to fall by at least 60%. To do otherwise is going to result in a significant inventory issue by the Q4. (Who can forsee a demand for 2400 machines in Sept. of next year after the release of Rhapsody, faster G3s and a stronger chance of NCs?) Good luck-Doug