As I said and proved by the report that those first time buyers of pcs who had budget still
like to spend the money to buy pcs in the $1500 - $2000 range. Those who did not buy pcs before because the price now start buying pcs in the sub $1000 product lines, and those who
bought second or even third pcs are now buying pcs either in the sub $1000 range or the middle range , which start from $1000 to $1500 depending on the budget available. So to
CPQ, the sub $1000 pcs are additional revenues to its total revenue comparing with previous quarter. So, no surprise if we see an explosive revenue and profit growth in the comming
Jan earning report.
As to the currency fluctuation, CPQ is different than ORCL, since most of the components
for PCs were manufacturered in the fareast, as the currency depreciated against dollar, CPQ's
cost will be reduced significantly. But for software companies like ORCL, most of their cost
came from the R&D, which were paid as salary to their US employees in dollars. Also ,
if they quot the price in local currency for license fee, it will take them at least four quarters
before the contract was due for renewal when they can increase the price.
As to those downgrading stuff from thos analysts, just assume that they did not know anything at all, and the Jan earning report will speak out !!!!!!!!! |
