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Technology Stocks : Corel Corp. -- Ignore unavailable to you. Want to Upgrade?

To: James Calladine who wrote (6605)	5/6/1999 2:03:00 PM
From: Scott Volmar	Respond to of 9798

James, Shouldn't Corel be entitled to a premium price for WP Linux when they have the only viable product in the Linux market? Leo is probably correct about jump-starting the market for Linux and associated software applications, but the idea behind producing unique products is to collect unusual profits. Further, if Corel had the cash to promote and advertise WP Linux effectively, and by having the only product on the market, Corel should be able to fetch a much higher price per unit than $50. For purposes of illustration, consider: WP LINUX per Unit $295.00 Duplication & Packaging 15.00 Distribution and/or Retail 85.00 Mass Advertising & Promotion 75.00 R & D Recapture and Growth 20.00 Contribution to Overhead, Taxes 50.00 Contribution to Shareholders 50.00 Consider the possible pricing for Office for Linux at about $495.00. There is no need for upgrades yet thus ensuring the higher price. If MSFT can sell Office Pro for $549, this pricing does not seem unreasonable. Scott