Tony, re: Y2K
You are right, IBM is the only company that had to fall back on Y2K as an excuse, and I think the only tech company that is reducing expectations based on Y2K. Read the statement, between the lines:
"Looking forward, we believe we will continue to feel the effects of the Y2K slowdown in the fourth quarter and into early next year," Mr. Gerstner said. "However, even though it is difficult to make predictions, next year has the potential to be a very good year for IBM, once we get past any lingering Y2K effects. As our third-quarter results demonstrate, our business portfolio has great breadth and resiliency. We remain confident about our fundamental business strategies, the value of our products and services, and our overall momentum."
it sounds VERY defensive.
Services are great, they provide nice revenue and gross margin, but are open to competition because of lack of exclusivity. Proprietary technology, enjoyed by Intel and others, deserves a premium it doesn't receive. Maybe some day. In the meantime, INTC will most likely be brought down by IBM's results.
John
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