Math Lesson:
1st Quarter Write Off due to Channel Stuffing. $500,000,000
Number of PCs in Channel (Units) 250,000
Average retail per unit (Estimate)
75,000 Units @ $2500
100,000 Units @ $1200
75,000 Units @ $ 800
Average write-off per unit (Estimate)
75,000 Units @ $2000 New Cost to Customer $500 per Unit
100,000 Units @ $2000 Pay Customer $800 per Unit
75,000 Units @ $2000 Pay Customer $1200 per Unit
New Stock Price Per Share $23.50
Conclusion:
A. Reason for no earnings is unknown to share holders or public.
B. <1K PCs really cost more than $1K.
C. Next quarter will be better than anticipated.
Mr Mason, Inquisitive share holders want to know!
Mike Gordon
|
