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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Eddie Kim who wrote (44628)	5/23/1998 11:58:00 PM
From: Dr. David Gleitman	Read Replies (1) \| Respond to of 176387

I have seen in the local NY papers 400 MHz computers with 64 meg ram, 8-0 gig drives with DVD, 56 K modems and 17 inch monitors for about $1,900. David

To: Eddie Kim who wrote (44628)	5/24/1998 1:53:00 AM
From: Jack T. Pearson	Respond to of 176387

You may have misread what I wrote in my previous posts. You are correct. Compaq sells for $2500 without a monitor. Dell sells a system that is pretty much equivalent for $2283 with a 17" monitor. Compaq could sell their system cheaper on their web site because they don't have to pay the handling costs and profits to their distributors and retailers, but they don't dare because their distributors and retailers would see their sales drop and would therefore move their sales support to PCs from Compaq's competitors. Compaq is riding a tiger and can't dismount. The only way they, or HP or IBM, can get price parity with Dell and Gateway is by cutting their price on both their web site and to their distributors and retailers. Then they don't make any profit.