Hi Tony,
I saw the guy you're talking about. I tape CNBC a lot . Went back and found the interview. Grab a Q-tip. He's Jim Carlton, a technology reporter for the WSJ.
CNBC prefaces by saying that PC manufacturers are hoping for a strong sales season but that the growing popularity of the sub-$1,000 PC may take a bite out of profits. CNBC asks how sales of the sub $1,000 machines are going and how the manufacturers can make any money on them? Carlton responds by saying that this is the problem facing manufacturers - there are more and more consumers but that profit margins are down. The entire PC industry has been wrestling with this problem for the last year and a half. ASPs are down to $1,200 this year from $2,000 last year. This year we'll be seeing a $399 machine (sounded like he called it an "e-machine" - cc didn't pick it up). It's a good news/bad news scenario. CNBC implied that maybe the features weren't there on these models? Carlton said that they were pretty well-equipped ("robust") and gave specs for one of the models (thought he mentioned "e-machines" again). He then said that he'd spent $2,500 on his own computer two years ago and his machine doesn't have half the stuff these do.
CNBC then asked about Apple and the IMAC. Carlton apparently wrote a book about Apple. He was complimentary of Steve Jobs. He said that IMAC sales were doing very well , especially X-mas sales. He said that Apple was going after the first-time buyers with their financing plan and that he thought that it was a good strategy. CNBC asked about Apple's future as far as software development for their platform. Carlton said that he thought that was problematic for Apple - they are losing marketshare (down to <4%). There are some big developers like MSFT and game-makers, but there are also defectors. Pointcast has said that it will no longer support the Mac platform. Software developers are going to have to decide if it's worth the time to write software for such a small market segment.
CNBC then asked about how things were going for the big box makers like Gateway, DELL , Compaq and Hewlett-Packard. He said he thought it was going to be a "gangbusters" X-mas. Good news is that the analysts are saying that the worst of the profit margin squeeze is over. Components are in short supply. He said there is strong demand, sales will be high and he thinks it is going to be a good X-mas for everyone.
Sounds like a positive interview to me. No?
K
|
