Jules, I'm no bean counter, PC division is a net LOSING MONEY operation for IBM, no? Wouldn't a solid OEM commitment - in lieu of IBM brand boxes - result in a net increase in margins overall? That is, providing the IBM brand box expenses are cut.
I can imagine a lot of reasons why IBM carries the PC products group, from a whole-company perspective. However, I can also imagine how a partnership letting Dell handle the desktop PCs could achieve these goal at less cost, perhaps even at a profit.
If this allows IBM to focus on higher margin arenas (service, software, servers, networking, laptops...) then life is good.
Also, in terms of hype, a partnership between old, steady, boring, business IBM and young, dynamic, super-stock of the 90's Dell has got to look like a stock broker's dream. Hitch IBM to Dell's hype wagon, and sell the stock.
Anyway, hype is just hype, and I'm in this one for the long long haul. However, I would appreciate discussion on how net margins are effected since the PC Desktops are struggling manfully to rise to break even- at least, that is how I read the 10K.
I expect I've got this wrong- so somebody call me an idiot, but state your reasons, please!
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