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Politics : Formerly About Advanced Micro Devices
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To: Charles R who wrote (75614)10/15/1999 1:09:00 PM
From: tejek  Read Replies (2) of 1572745
 
RE <<<This is too abrupt a transition. They should have done that in Q1.>>>

I think they may have done it this way because CPQ has taken so much flack for doing it in a more moderate, transitional way.....the retailers who got cut are p*ssed and the ones left feel like they are in place only until CPQ has its website producing at the level it wants and then they will be let go as well.

I suspect if you are going to do it, why not Q4....that's the best quarter for sales.....so why not eliminate the cuts to retailers in that quarter and improve the bottom line. They probably think that the IBM franchise is so strong, buyers will go to the net if they can't find it in a best buy or fry's. I am not sure that I agree....but its probably what IBM believes. Like engel has said, the pc operation has been a major loser for IBM....maybe this is the way they see out of that hole.

ted
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