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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (9733)	7/28/1998 12:11:00 AM
From: Charles Tutt	Respond to of 74651

Well, that's one spin that can be put on it. Or perhaps they expect volumes to rise on Unix and don't want to be left behind. It does, however, indicate that the statement to which I was responding -- that Unix software is always higher priced than NT software -- may be a bit dated. It's always harder to respond to an argument that's constantly shifting (e.g. Unix S/W is always more expensive --> Unix software is cheap because it's on firesale). JMHO.

To: DownSouth who wrote (9733)	7/28/1998 11:04:00 AM
From: Mike Milde	Respond to of 74651

<< Suddenly the margins for the Unix versions = the margins for the NT versions. That indicates that the demand for Unix versions is/has decreased, so prices much be lowered. It also means that the R&D spent for Unix versions is suddenly not so profitable, especially as volumes decrease. >> Why does that indicate demand has decreased? Why do you assume from this that volumes will decrease (as prices decrease)? This makes no sense. It's like saying that because Intel is constantly dropping prices on its CPUs that demand, profits, and volumes will decrease. I think you have a conclusion that you want to believe and you are looking for a way to make it seem logical to yourself. Mike