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December 2001

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Subject:
From:
Chris Murphy <[log in to unmask]>
Reply To:
TechNet E-Mail Forum.
Date:
Wed, 12 Dec 2001 16:59:41 +1300
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Hi Steve,

dont forget that for some of these suppliers part of their business is
to refurbish used machines and then offer them as a cheaper alternative
for companies that cant afford to buy new.

If suppliers are buying all of the old machines to force people to buy
new, then they would have to make enough profit on the new machine to
offset the costs of buying the old ones, which might be pretty difficult
to do in today's competitive environment.  Mind you, if they got the old
equipment cheaply enough, then maybe it's worth it.

Two other theories are 1)  More people want to buy second hand due to
cash constraints so the OEMs want to get more into this market, or 2)
The OEMs are trying to temporarily take these machines off the market so
that they get some work for their factories and dont have to shut them
down.  If they believe the financial anaylsts then the US economy will
bounce back next year, and they can release the old equipment then.


Regards,

Chris Murphy

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