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To: Thomas G. Busillo who wrote (47224)	7/19/1999 1:21:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 53903

Japan's PC Sales Remain Brisk in Third Week of June July 19, 1999 (TOKYO) -- Sales of personal computers in Japan were brisk at large retailers in the third week of June (June 21-27), recording double-digit growth in both units and value as compared with the previous week. According to GfK Japan Ltd., an information service company, PC sales in Japan during the third week of June at about 2,000 electronic appliance retailers rose by 14.3 percent in units and 12.0 percent in value from the previous week. And compared with the same week a year ago (June 22-28, 1998), such sales increased 87.9 percent in units and 84.6 percent in value. The average PC sales price dropped by 4,514 yen to 219,782 yen, from a week earlier. (120.63 yen = US$1) The average sales price of desktop/tower type PCs plunged 6,518 yen from the previous week. Although prices of desktop/tower type products remained stable, the average sales price fell sharply. The reason is that high-end products such as LCD models and 17-in. CRT models are out of stock due to production shortages. As for notebook PCs, the average price dropped by 2,649 yen in the week. GfK Japan collects POS data from 55 IT-related retail sales companies centering on high-volume stores specializing in home electric appliances. It covers about 3,200 stores (as of April 1998) spanning Japan. GfK Japan cooperates with Nikkei Market Access to provide weekly reports of PC sales in volume and value. The sales data has been based on the same 41 companies (with about 2,000 stores) since April 1996. The number of PCs sold at the 2,000 stores is estimated to comprise about 10 percent of gross domestic shipments, and when limiting the sales to retail sales channel, the share comes to about 25 percent of such shipments. nikkeibp.asiabiztech.com

To: Thomas G. Busillo who wrote (47224)	7/21/1999 11:22:00 AM
From: Thomas G. Busillo	Respond to of 53903

IMHO, the headline re: MIS sale should really read: ISP Traded For Book Value and Future Conditional Draft Pick From a org. design/cost minimization/strategic POV, yes, it does make sense to have the PC-subsid running the ISP-division and the SpecTek component recovery operations run by the parent semiconductor company. Conversely, then it probably hasn't been optimal up to this point. Why? Who was running the show back in 94-95? It's fine to want diversification. But if you're going to diversify, you better know why you're doing it and be able to follow through with the resources. If not, you're going to end up throwing your resources into what is destined from the beginning to become someone else's fire sale bargain. Earthlink started in June of 1994 with a whopping 10 modems. MIS started in December (?) of 1994. Earthlink has a market cap in excess of $1.8 bil. MIS is such a vital part of MU's overall business that the word "Internet" (let alone, "Micron Internet Services") does not even appear in their most recent 10-Q. If Earthlink is acquired by a hardware OEM, it will not be for "book value". You can have the best managers in the world, but if you starve them of resources, don't expect much. Good Trading, Tom