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To: Jim Patterson who wrote (53410)	7/23/1998 11:33:00 AM
From: D.J.Smyth	Read Replies (2) \| Respond to of 176387

<<If there is so much growth, Then how come there is not a hot company that makes Telephones?>> there was James between 1900 and 1925. Bell was the company to own. We're far from saturation in the computer market relative to the world.

To: Jim Patterson who wrote (53410)	7/23/1998 12:33:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 176387

Costs, costs, costs....The PC is somewhere between the telephone and the fiber optic lines in terms of cost. Most people can afford telephones, making them a commodity product without question. Many fewer can afford a (real) PC, and only a very small percentage can afford to build the network infrastructure to allow the telephone to function. This makes the network highly valuable, and therefore highly profitable. The PC somewhat valuable, and respectably profitable. The telephone not very valuable, and with little profit potential. The PC and the network have value inherent in the fact that their power is not universally available in terms of ownership, use, and control. Whereas the telephone is much more universally available. Hence, Lucent makes money on the network switches, more than it does on handsets. Likewise, DELL makes money on the box because of the demand for more power, and DELL's ability to deliver that power at a competitive price. Greater power will always be needed, and since DELL is positioned to deliver the cutting edge power faster than everyone else, it will own a large portion of that ongoing market. The argument about how much power do we need, is total bunk. There will always be a need for greater and greater power. LoD

To: Jim Patterson who wrote (53410)	7/23/1998 10:56:00 PM
From: K. M. Strickler	Respond to of 176387

JP, >>If there is so much growth, Then how come there is not a hot company that makes Telephones?<< First, you have to realize that the 'telephone' really is. The instrument has a microphone, earphone, Tone generator, a ringer, and a printed circuit card to do the interface. None of this is particularly 'earth shaking' technology! The 'instrument' - basic phone - has matured! How much profit is in the basic phone when you can 'buy' one for $8.99? (say $9 retail - that's $6 wholesale [or less] - manufacture cost $4-$5, maybe) Additionally, there are a myriad of manufacturers producing instruments from all over the world where the labor rates are very low. Regards, Ken