and now for some comforting perspective as per dotcomcancer:
From Michael himself:
by: dotcomcancer
11/30/00 4:20 pm
Msg: 199395 of 199401
To: Compaq Global Team
As you can see from the news, there is continued volatility in
the market today, particularly in technology stocks. One of
our competitors in the PC market announced that it would
not meet revenue and earnings expectations for the quarter.
This has had a negative impact on technology stocks,
including Compaq. I know this creates a lot of uncertainty for
employees as well as for our shareholders and customers, so
I wanted to give you our view of what is happening and how
Compaq is positioned in the market.
We do see softness in some markets and an overall slowing
in the rate of growth in the North America economy. One
result of these conditions is likely to be increased price
competition. This means that during the next few weeks,
superior execution is even more important.
But we also believe that these are short-term issues. We do
not expect customer spending on technology to slow down
over the long term. The demand for Internet access - and the
demand for new kinds of Internet devices - will continue to
grow as the Internet grows. And even with a softening
economy, we believe that businesses will continue to invest
more heavily on Internet infrastructure than in other areas.
I believe we are very well positioned to compete in this
market environment. To begin with, we are a global
company, and more than 50% of our revenues come from
outside the United States. In fact, we see opportunities for
global expansion in 2001, and we expect the European
market to continue to strengthen.
Our revenues are also balanced across key markets. In Q3,
we generated 34% of our revenue from enterprise servers
and storage, 31% from commercial PCs, 19% from
consumer PCs and 16% from global services. In other
words, we have significant enterprise strengths, broad reach
in the market and a balanced portfolio.
We continue to execute well on behalf of our customers, and
I am confident in our ability to manage through these difficult
times.
Our strategy, which is focused on leadership in Internet
infrastructure and access, is absolutely right for where our
customers and the market are going. Our products and
services are more competitive than ever. And we’re
continuing to win major contracts with high profile customers
worldwide. Just take a look at the alliance we announced
Thursday with the Walt Disney Internet Group that makes us
their preferred technology provider and the power behind
market leading Web sites like Disney.com and ESPN.com.
Finally, our hybrid distribution model is proving to be a real
competitive strength. The combination of improving direct
capabilities and broad partner reach is enabling us to serve all
segments of the market.
We have a lot to be proud of. Thanks to your hard work,
we’re having a great year. Customer satisfaction is up.
Employee satisfaction is up. And our market share is up. As
difficult as things may appear, we have every reason to be
confident in our future.
Michael |
