Bruno -
around two thirds of compaq's business are still PC based
I think you are looking at units. Below is my educated guess based on ASP against unit sales, and Tandem and DEC numbers prior to acquisition, but I think these are pretty accurate.
In revenue terms the distribution is:
6% - Consumer products
37% - Commercial Desktops
14% - Non-Alpha Enterprise servers and workstations
8% - Enterprise Storage
1% - Network Products
10% - Alpha based products
6% - Tandem
18% - Services
Looking at contribution to GM the results are even more skewed:
3% - Consumer products
22% - Commercial Desktops
18% - Non-Alpha Enterprise servers and workstations
12% - Enterprise Storage
1% - Network Products
12% - Alpha based products
10% - Tandem
22% - Services
So I believe that less than half of CPQ's revenue, and less than 25% of Gross Margin, comes from the 'PC' business. This is not a reflection of a decrease in volume or margin in the PC business, but more a reflection of the much higher margins and ASPs in the 'new' businesses. This is also why the success of the enterprise businesses is so important, and why wall street is focusing so intently on that segment.
BTW, I think that the growth potential for CPQ in these segments is greater than in the 'PC' business, since CPQ has the ability to take share more easily and more profitably from companies like HP, IBM and Sun than from others in the highly competitive desktop PC business.
I would expect the shift to enterprise business as the mainstay of CPQ's revenue and profitability to become even more pronounced going forward. |
