PTB - Last I heard, the WEBxx boxes were NOT selling all that well. PC's to my knowledge, are. In my opinion this industry will continue pretty strong, when Merced comes out there will be another round of upgrades, tech marches on. Margins are always a concern, but so far, CPQ is selling lots of the cheap boxes and margins appear to be rising. SE Asia cutting prices is a net plus for CPQ, remember they make money on the high end, so even if WEBxx does take off, that means more server sales, doesn't it??? (And more higher margined sales for CPQ). The other thing is, why would management say the company will be 50b in a couple of years, and split the stock? If things are tanking, and CPQ should sell at 40 or 50 or whatever, why split it? That would be close to a post split price if CPQ stays near it's highs...
John |
