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To: M CAHILL who wrote (129466)5/27/1999 6:40:00 PM
From: D.J.Smyth  Read Replies (2) | Respond to of 176387
 
<<As PCs approach TV prices more people will shop at places like CompUSA>>

clearly disagree. PCs are much too complex/fragile to be a TV priced item, and it has been shown inextricably that buying a PC direct saves money over buying it through resellers. The margins on PCs are too thin for both the box maker and the resller in order to compete effectively in the long run against direct sellers.

Thin margins consequently result in (a) inability to expand decisively into new, fully R&Ded products, (b) inability to act quickly when the market changes among other things.