Altho PC profits affect AMAT, there is , IMO, a substantial cushion. By fiercely price competing, more units will be sold, albeit at a lower profit margin. It has been stated on this thread that the equipment buyers are more concerned with productivity than the price of the equipment. More pressure will be on the PC producers to increase productivity. When I see the absolute numbers of PCs decrease, I'll be more alarmed than with their margins. I also suspect that Compacts loss was Hewlitt Packard's gain.
However, SEA, is hurting business, but unless they cut elsewhere and upgrade, their semi businesses will be hurt. I posted a rumor I heard on Bloomberg, that Intel was going to invest in Samsung, but have not heard more. In addition, more uses for chips are coming.
Once again, things are not good, but I don't see a one-to-one comparison with the PC manufacturers.
still long for the long term -- fred |
