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

To: Richard Habib who wrote (22659)	1/19/1999 3:23:00 PM
From: MeDroogies	Read Replies (1) \| Respond to of 213173

When price differential is meaningful, then price is a factor. When it is not meaningful, it is not a factor. Hence my cynicism. As for putting forth ideas for what the future may hold, I am taking shots at it. I have not said anything is a reality. You, rather take potshots without making a considered response in terms of what you think the future is. I'm wrong, you're right. Your turn. What is/should AAPL do? BTW, I NEVER claimed I could substantiate anything, I was putting forth ideas based on conversations I had with people. They may not hold water as far as you're concerned. Fine. This thread is designed for thought and discussion.

To: Richard Habib who wrote (22659)	1/19/1999 7:00:00 PM
From: BillHoo	Read Replies (1) \| Respond to of 213173

<<machine similar to the iMac at $499 this spring it will sit on the shelves next to the iMac at some of the same retailers Apple uses. I'd say an impact will likely occur.>> To retailers, there is a "sweet spot" between which machines are priced to go and priced to make $$. Sure, the box maker can probably sell a $399 machine and slim down their margins enough to make a profit for themselves. However, that does not make much for the retailer even if they can achieve volume. I've talked with a Compaq rep who explains how he works with clients looking for extreme low-end machines and gets them to the "sweet spot". There, the client is happy with higher performance of a slightly higher priced machine. The salesman is happy with a bigger wad of cash in his pocket. If I were a CompUSA salesman and they were offering a bonus for every iMac I sold at $999 vs. small profit and no bonus for a $399 PC, I'd be pushing iMacs like crazy! That's my sweet spot! My employer gets a greater profit and I get a bonus for greater dollar sales and bonus per machine! Used to do this in bars when I was in the military. A gang of us would go for the free happy hour buffet and eat piles of food. The owner would put up a drink minimum to get at the buffet. Instead, we'd give the waitress a bigger tip so she would look the other way when we helped ourselves to the buffet without the drink minimum! -Bill_H

To: Richard Habib who wrote (22659)	1/19/1999 7:18:00 PM
From: BillHoo	Respond to of 213173

<<who doesn't thing $399 internet ready machines selling on shelves at the major retailers alongside more expensive machines won't have an impact. >>> Yea, we'll see a large chunk of PC box-makers price themselves out of business when they can't afford to support those $399 machines (monitor sold separately) and word gets out that it could cost up to $500 to fix em when they break. I think Commodore made the same mistake. Lotsa machines sold, but they couldn't make enough money to stay afloat. Just my guess at the future.... and the little slightly over-priced iMac keeps chugging along with its cash-rich company. -Bill_H