<<< Ican not tell from the numbers what impact the SMB initiative had, but if the group had profitability only equivalent to the consumer group (in percentage terms), and had no inventory charges, the overall number for CPQ would have been about $350M better - they would have reported .25 or better instead of .07!>>>
Hmmm, after doing similar calculations based on the earnings report I come up with the same number, .25 /shr based on only 4.3% profitability in the consumer product group and assuming the $200 mil was not sold out of channel.
I agree it makes sense in SMB to nurture large accounts and forget competing with Dell for the SNB white box accounts (unless it can be done selling well on the web site).
In the longer term, perhaps one year, though, isn't the real competition going to be who offers the best solution to the combo device--- wireless net and phone access, and PC functionality without the complexity? The commercial group success in the next year or two may depend on meeting these market needs first and best. How does CPQ stack up here?
Doug |
