I have heard A company called Synnex invested by Taiwanese company, just like FIC, which
is contracted by CPQ to assemble PCs for CPQ was doing 2 billions of USD in 1997 and expect to do 3 billions in 1998 !!!!! Of course CPQ has many contractors, Synnex is just one of them!!!!
For ORCL, if it quot the price of its product in USD, then the currency fluctuation will not
hurt. However , if the price was quotted in local currency, then there will be a problem for ORCL, because ORCL's license fee was set based on a year to year contract with the
customers, it will take another four quarters for ORCL to increase the license charge
to reflect the currency fluctuation when the license contract is due to be renewed. And ORCL's problem is more than just currency, it is a structure problem which related to
product and competitions.
I know ORCL had its business in China handled by local distributors (from Hong Kong) , and
ORCL quot the price in dollar to its distributor in China. So, technically speaking ,ORCL
should not have currency problem in China, and if it handled its business the same way in
Japan as it handled in China, currency is not a problem either for ORCL in Japan.
People on this thread concentrated too much effort on the sub $1000 pcs. As we know, Sub $1000 pcs is not the only product for CPQ, and as I said, the sub $1000 PCs is just additional
business to CPQ ( even without the sub $1000 pc business, CPQ will do pretty well . Just
look at DELL earning report on Nov). People did not buy PCs before now start to buy PCs
as a result of price drop which made the PCs affordable to them, and those with the budget
would still like to buy PCs in the $1500 to $2000 range. People who wanted to buy additional pcs but do not like to pay high price as what they pay for their first pcs will like to spend
less than $1000 for additional pcs. That is why I said the sub $1000 pcs is just additional
business for CPQ, without them, CPQ will do pretty well too. Just like you would like to
have a BMW 720 at home for major commute and a used Honda for back up !!!!
I think we probably need to discuss more about CPQ business in other product lines, like
the servers, the NT workstations ....etc |
