tippet,
Did you say declining earnings tippet? Perhaps this post is for you then.
Message 8542202
If businesses are in a position where they cannot afford to (as distinctly opposed to need to, as in Gary's case) deploy the latest technology, the US economy will most certainly go downhill pretty soon. I see no signs of that happening, till now the usual argument that I have heard is that the business need is not expanding. Also, don't make a trend out of certain old institutions that failed to adjust to the new economy's challenges and went the path of lay offs. And even lay offs have not slowed consumer spending. Based on credit, perhaps, but even that has no signals of drying up if inflation remains low.
So, all in all, if you claim that business on the average cannot afford the necessary technology budget, you are engaging in wishful thoughts IMO.
As for revenues and margin, DELL can sacrifice margins a bit (but not a lot), gain revenue and improve earnings. BTW, deployment of 20 eMachine boxes do not mean that the business box premium has gone down on a percentage basis, in fact it may have gone up due to the attack at the very low end.
-BGR. |
