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

To: BGR who wrote (95639)	2/7/1999 12:10:00 AM
From: Skeeter Bug	Read Replies (2) \| Respond to of 176387

>>It is not mandatory to lower prices with better savings via use of technology.<< ok. we just made progress. assuming a business is in it for the money, they will never lower prices unless failing to do so impacts the long term bottom line (as they perceive it). savings, in and of itself, doesn't necessitate the lowering of prices, therefore prices aren't lowered due to the savings. ever. at least in a rational business person's mind. irrational does exist. so, what makes people lower prices? excess supply relative to demand. you have too much stuff and you want to sell it. you can't. so, you spur demand by lowering prices so you can sell it. i totally agree that lower costs make the lowering of prices easier to swallow. easier to justify, too. but there is no direct causal relationship in a rational business environment (indirect in the fact that advances can spur supply - not of necessity but of choice...). however, many companies (micron last year) lowered prices after they were already losing money! let's lose more money, folks! yeah! why? they had to to maintain market share in a supply demand imbalance. they most assuredly didn't want to reduce prices due to a tech advance. wow. we're actually pretty close on this issue now. 'magine that? ;-)