If the revenues did not fall , but the profit margin, then it is good news for Microsoft.
It means the unit shipment is increased comparing with previous quarter, but the profit margin was degraded due to the sub $400 PCs.
The y2k will bring good opportunity for Microsoft, many companies ( still running Win3.1 on 486 ) will have to buy new computers + softwares. I bet , Microsoft's sales will accelerate by the second half of this year.
Internet takes the lead, those companies provide the equipment will grow big. PC will be a commodity business with big revenues but thin margin. With PC getting cheaper, more people will own PCs, more people will try to get onto the net, and more equipment will be bought by companies like Yahoo, ... from Csco, LU, NT..etc So, companies like AOL, Yhoo, MSN, CSCO, LU will all benefit. Intc's growth will slow down due to competition from AMD, and competition from AMD will continue to be a nightmare for Intel , and drag down the profit margin in the years to come.
So, e-commerce takes the lead, and CSCO, LU , NT grow together. Microsoft needs to spin off MSN asap to let investors realize the value of MSN. PC will grow faster in the years to come due to the sub $300 effect, the chain effect is all internet related ,
networking related companies will all boom together. |
