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To: Meathead who wrote (41027)	5/8/1998 3:14:00 PM
From: Jim Patterson	Read Replies (1) \| Respond to of 176387

re: One only needs to look to the auto industry as a comparison to see this relationship. Appliances come to mind as well. Meathead, The auto industry is an incorect industry for any kind of comparison, especialy on price. Auto makers do not devalue their products like the tech industry does. Ford will not lower the price of a new model year ever. If they did, they would be devaluing every auto they ever made. Today it would be even worse. Lease pricing / monthly payments are all based on the resale value of the vehicle at the end of the lease. If Ford cut the price of a 199 Explorer by 1%, then all resale values of Explorers would also decline. Now Ford has a lot of assets on the books as leased vehicle. A price cut would cut straight into their balance sheet. Now the new model may have more standard features which make the sticker higher, but in the broad picture, the price is higher. Now take the PC industry, where inventory drops by 1-2% per week. I am just pointing out a big difference in how two industries work. Jim

To: Meathead who wrote (41027)	5/8/1998 9:57:00 PM
From: kemble s. matter	Respond to of 176387

Meathead, Hi!!! Glad to hear the house is moving along fine.... As you are aware of ...I find the quotes of Michael to be quite succinct and easily understood...I don't feel like looking this up for verbatim...but, I'm sure you remember his comment with regards to the $1000PC's :" We are fortunate to have many opportunities in which to chose from and therefore are avoiding this"....He has also commented that you can have our $1000 PC with all the trimmings for $1500"....Thanks once again for joining us....love your posts... Best, Kemble