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To: Thomas M. who wrote (54283)	4/23/1998 2:10:00 PM
From: Paul Engel	Read Replies (2) \| Respond to of 186894

Tom - Re: " What is causing ASP to plunge, a Mafia conspiracy? -g-" For a guy who talks like he knows so much, you sure don't know the obvious! ASP's are dropping primarily because AMD and Cyrix, in an attempt to gain market share, are making and selling x86 clone chips WAY BELOW THEIR ACTUAL COSTS. That is why - in case you haven't figured out this little fact - they are LOSING MONEY. Intel is dropping ASP's in order to maintain as much market share as they can. Paul

To: Thomas M. who wrote (54283)	4/23/1998 5:59:00 PM
From: BelowTheCrowd	Read Replies (1) \| Respond to of 186894

Tom, ASPs are dropping because more and more people are willing to buy "last year's machine" and be happy with it. Realistically, it's always been possible to get a $700-1000 PC by purchasing one that was using older technology. For example, buying a 386 when 486 was mainstream, or a 486 once Pentium had ramped up and become the dominant chip. The same is true today. You can buy a "previous generation" technology for really cheap. The DIFFERENCE is that software hasn't come along to really require the latest and greatest machines. Many of the people who are buying the new ones are looking mostly for internet access, which doesn't need much. So a whole new market is created, for PCs using old technology. Some (but apparently a small percentage) of traditional buyers are getting swayed by the new cheap machines, but most of them are still sticking with the high or mid-range machines they always bought. Also worth noting that the sub-$1000 phenomenon exists mostly in the US and mostly in the retail (home) market. That's still only a small slice of overall PC computing. mg