Rudedog ... About the iPaq
>>>a billion dollar run rate - that is 2 million iPaqs. At $500..<<<
The iPaq sells between $500 to $800, wouldn't an average range of $600 to $650 more reasonable?.
>>>CPQ will have iPaq as 20% of its commercial units.<<<
Is the 20% units or revenues?. With ~$12B sales of commercial PC's in FY99, $1.0B sales of iPaq would be about 8% of revenues. BTW, Winkler said in the analyst meeting that the iPaq sales wouldn't cannibalize the PC sales. I have my doubts about his statement, what do you think?.
>>>iPaq is a 4% net<<<
I take the 4% net to mean operating margin (OpM). This seems to be a very low number for a direct sale, I would think the OpM should be in the 8% to 10% range.
About Dell's Problems
Dell started to lose market share in the SMB market to CPQ according to this article:
**************
2/18/00 - CRN Reseller Poll:Hardware -- Door Is Open For Compaq To Regain Desktop Edge
tscn.com
From the article:
Survey data from January shows 16 percent of respondents cited Houston-based Compaq as the manufacturer of their best-selling desktop in the small- and midsize-company market. This was the highest percentage among all major vendors, and the highest figure for Compaq in particular since last April. It also was the first time since August that Compaq grabbed the top spot on the best-selling desktop list.
"Compaq has taken steps toward leveling the playing field with competitive pricing," said Mike Wintory, president of MicroAge Galesburg, a VAR in Galesburg, Ill. "This has enabled VARs like us working in a smaller tertiary market to compete head on with the computer superstores and mass PC merchants."
But Compaq's recent plans to sell more PCs direct to the business market could hinder further upward movement, according to CRN survey data. Two CRN spot surveys show between one-half and two-thirds of responding VARs would shift business away from Compaq if the vendor goes through with its plans.
**************
I don't understand this last paragraph. CPQ has 3 channels: Direct for corporate accounts, Direct Plus for VAR's, and indirect through distributors. I would think that going more direct affects only distributors but not VAR's since they can purchase products through the Direct Plus program. Your comments, please. |
