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" Robert, does this or does this not tell you something? Quantity discounts aside, this should tell you that IBM can sell these things at a *lot* lower price and still make money. Now I don't expect the consumer to get OEM prices, but paying well in excess of 2x as much as the OEM does is a pretty nifty trick." A factor of 2 is normal in OEM deals, the disks that you think are such good buys at $400 probably cost Gateway 2000 half that amount. That kind of markup is normal, remember it includes a substantial markup for the dealer as well as the cost of doing bsuiness on an individual unit basis instead of a much more desirable OEM deal. Note that you are looking at *list* prices here, a dealer that charges you list is making a good profit, never mind IBM. If my regular reseller could get one, I could get it well under list, but unfortunately there just aren't *anY* of these 1.2 gig disks in the regular channels, they are DRY! zdp