People on this thread and the street concentrated too much on the sub $1000 pcs. Pls do not
forget, besides sub $1000 pcs , CPQ had all lines of products available to fit the needs of different customers. sub $1000 is the growth areas for the future and it is counted as additional business for CPQ, with sub $1000 , a big market will be opened for CPQ, like the
video conference equipments on pc, ...etc. In the future , we do not have tv sets at home but
LCD displays for BOB, Johns, ..... which are controlled by a PC server. The LCD displays
will be used as part of video conference tools, video phones...etc, what I mean here is that
sub $1000 pcs only open up additional market for CPQ, with every family has pcs, lots of
additional hardwares can be sold to the regular family.Besides the sub$1000 pc market, CPQ
is also involved heavily in the middle and high end PC business, engineering workstations, servers ...etc. Now, the street only know that CPQ keep reducing the price of sub $1000 pcs,
but it did not look at other end of the equation, i.e the components cost was reduced
significantly, with BTO program implemented, less inventory , which means less cost, more
profit, with faster turn around, means more profit for CPQ. The street is currently worry about the profit margin of cpq, but it did not look at the cost. |
