Paul - RE: "Compound that by a flawed business model emphasizing low end low profit boxes, and channel stuffing with older AMD chips and you get CPQ results."
Why do you people CONTINUE to think AMD is the problem for Compaq? Compaq stated in their press release -
"''The quarter's shortfall reflects lower than anticipated market demand and increased competitive pricing in the commercial PC sector,'' said Earl Mason, Senior Vice President and Chief Financial Officer. "
Do you see the word retail anywhere in that statement?
Does Compaq put AMD chips in commercial PCs???
So obviously there was no "channel stuffing with older AMD chips" as you want to think, but a "channel stuffing with Intel chips". I don't know if Intel was actually affected by Compaq's Q1 problem because if Compaq's inventory was "stuffed", they already bought the chips from Intel. However, if Compaq tries, again, to fix their sales model, they will try to keep their inventory lower in this Q, something that will affect Intel's sales, and I think something that also happened last year. Since Compaq is Intel's first or second best buying customer, I won't be surprised if Intel is not upbeat about this Q. |
