John, going back to your answers to my questions
If you don't mind, the answers you gave have stirred additional questions.
1. Did I mis-hear Walt when he gave guidance to 99 by saying that he still expects Cube to at least meet analysts projections ?
2. When we say Cube goal is a 50% gross margin, is that so that they can buy market share?
3. It sounded to me that AB is planning his bottom line (if possible). Which I am assuming means he will pass up investing in certain revenue generating opportunities (ie PC-DVD playback) if he believes that a certain gross margin is not attainable, or that the long term growth prospects of the product is not there. With that said, I believe that he has committed Cube to the digital communications side believing that it has the best potential for a ROI. Do you agree ?
4. I'm not sure of whether AB's strategy for consumer digital products is to spend on R&D, maintain a technological advantage, and let the big guys (Philips, Sony, Etc) create consumer demand ?( by waiting for them release products sooner, spend on advertising , and then send products through the pipeline once the demand is there ) or do they have a choice in the matter ?
Thanx,
Jeff |
