Oh please,
The sub-$500 PC flooding the market and going to crush CPQ's, DELL's, INTEL everybody's profit margin.
Is this history repeating it's self?
I just don't see it happening. First, you have several diffrent markets in the PC world, each of these major markets have diffrent types of PC buyers.
The PC has been around a long time, and people are more educated today about PC technology. They know that more MHZ and more GB and more RAM etc. is a good thing.
If anything the $500.00 PC may open up the market for those people who can't afford a "real" PC. I personally believe that the $500.00 PC might have more success in buisness than Consumer.
My reasoning is that the WEB-TV will be more popular with consumers who don't want all the "complexity" of the PC, but they want to cruise the web, recieve E-Mail and a few other basics.
What if?
What if the $500.00 PC where to "start" of fairly well, you don't think CPQ is watching or has a stradegy. I would be surprised if they did not?
If, the DEC merger/buyout does not go through, then CPQ could be in trouble in the future. The Server buisness is a necassity to selling desktop computers. CPQ needs Value Added, Servers help them solidify the desktop computers (for buisness). MIS directors are _very_ cautious who and what Server they buy. Servers can cripple there companies operations (and their jobs ;-)
Who knows what will happen with the stock price? If there is a big pullback on Monday, I look at it as just another buying opportunity. CPQ strikes me as a company who know's what the market is doing, and where they need to be and with what products.
Just my two cents.
Regards,
Kurtis |
