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Technology Stocks : HWP -- Hewlett Packard -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (2805)	1/6/1999 8:22:00 PM
From: William Partmann	Read Replies (1) \| Respond to of 4722

Sorry Ramsey but I disagree on this point. I see a large divergence between your basic inkjet (Apollo) and the upper tier inkjet. The upper tier will be the home of the digital graphic printer with high dpi while the cheaper machine will be used for wordprocessing and gross (in the technical sense)graphics. I see no cannibalization. Further, Apollo like Intel's Celeron, makes good business sense. It prevents competitors from profitably mining a niche. Bravo HP.

To: Ramsey Su who wrote (2805)	1/7/1999 2:25:00 PM
From: BelowTheCrowd	Read Replies (1) \| Respond to of 4722

Ramsey, In this business only one thing is certain. Either you cannibalize your own business, or somebody else will. Or as Andy Grove likes to put it, "You've got to be your own toughest competitor." Entry Level printer prices are declining. Period. HWP is losing market share to low-cost printers made by other people. Period. HWP can either come up with a way to compete at the low end or lose the business completely. They decided that the best way to do it is to form a new subsidiary, free of the "normal" HWP overhead. Probably a good move. Overhead kills a lot of low margin products. mg