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Technology Stocks : Compaq

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To: Aitch who wrote (54940)3/27/1999 7:36:00 PM
From: rupert1  Read Replies (1) of 97611
 
Aitch: I've looked at the PW report again.

From March 16 through March 19, 1999, we conducted a proprietary survey on PC demand within the SMB market

This is not enough time to have done a thorough survey. They don't justify their sample, identify the respondents, or even their geographical areas: they do give the questions they asked but the questions were not rigorous in providing criteria to compare responses. The value of the responses cannot be assessed because we do not know who was asked within the company, and their awareness or otherwise of IT issues, budgets and spending plans. It appears that the survey was conducted only among US companies, which is atypical of the international market on YK2 issues.

Our data indicates that most of the SMBs resolved the majority of their Y2K needs in 1998, driving PC spending for the year. Two key data points support this conclusion including: (1) 62% of the firms surveyed expect their PC spending to be down or flat in 1999 versus 1998. (2) The Y2K impact is expected to be much less of a driving force behind PC spending in 1999, as 69% of the firms indicated that Y2K WOULD NOT impact their 1999 PC spending.

If these "findings" are correct they suggest the following conclusions. (1) 38% of the firms surveyed said their PC spending will be higher in 1999 versus 1998. (2) 31% said that YK2 would impact their 1999 PC spending. Not a bad base to start with, then add all those who don't yet realise they have a YK2 problem.

Only 37% of the firms felt that PC spending would increase in 1999, from the prior year, while 11% felt that spending would be flat.

37% is a big "only" and 48 1/2% flat or higher is a big percentage to start with.

The primary driver noted for PC spending in 1999 is growth
of business, at 57% of those surveyed, followed by upgrades (including Y2K), at 37%, and pricing, at 6%.


If these "findings" are correct, and if the respondents are correct, then PC growth is very healthy for other than YK2 causes: YK2 is additional.

we surveyed 35 firms, from a variety of industries and geographic
locations.


Not enough, and which firms and who in these firms?

We were surprised to find that after only a few responses, a trend emerged......

Folks, this was not a survey in any normal sense of the word - it was a thesis.

Do you need to do anything further to prepare your company for Y2K?

Yes: 69%
No: 31%


And this is consistent with the other findings?

They opposed their findings to statements made by COMPAQ and DELL and other companies. Why make no reference to the US Congress Task Force on YK2 compliance which has done a huge survey and which recently stated that 50% of small companies have done nothing, and of the other 50% about 30% have done only a partial job on YK2 compliance. It also pointed out that business in other countries, in general, are at a much lower state of readiness than the US.
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