Compaq Message Board - Msg: 12263464

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Technology Stocks : Compaq

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To: rupert1 who wrote (73634)	12/12/1999 11:51:00 AM
From: rudedog	Read Replies (1) of 97611

Victor - I think the comment was made in the CC but I can't remember exactly. I think this was a general statement of the trend of PC growth and falling ASPs in the commercial sector versus the growth in the enterprise segment. He also said one goal was to get the PC business back to profitability while sustaining unit growth and market share leadership - that clearly is a falling ASP scenario but argues against a loss-leader strategy subsidised by other products. Products like the iPaq which radically reduce the base cost by consolidating components and eliminate inventory costs with a pure BTO process, clearly accelerate this trend, as we have discussed. The reduction in percentage revenue from commercial desktops strikes me as more of a result than a driver, but it would have the incidental effect you describe - shifts in the profitability or growth in the commercial PC business would have much less impact than they do today on overall corporate revenues.

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