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Politics : Ask Michael Burke

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To: Earlie who wrote (57113)	4/23/1999 10:57:00 AM
From: BGR	Read Replies (1) of 132070

Earlie, Thank you for your comments. I am aware of the easy comparison YOY. However, it is the relative shift in the product mix (geared more towards higher end corporate sector) along with unit, ASP and revenue gains and a clear improvement in earnings (less loss that is) which is very interesting to me. This confirms for me (the obvious) that when a company stops selling products at a loss to preserve market share in the consumer sector (IBM) it improves both units and revenues profitably (on a relative scale), wheras when a company does the opposite (CPQ) it gains in units and maybe even revenues but loses profitability. From this, I see a rough future ahead for EMachines and MicroWorkz unless they have found a means to improve efficiency dramatically and a bright future for DELL. Would appreciate your thoughts on this. I know that you have different opinions about DELL's valuation, but that aside do you have a more positive opinion about DELL's business strategy now? -BGR.

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