Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: gnuman who wrote (65193)	7/24/1999 4:16:00 PM
From: gnuman	Respond to of 132070

Fred, re: More on GTW margins Just saw this. Kind of confirms the argument. "The company attributed its quarterly results to its strategy of building on its higher-profit Internet businesses, namely its Internet service Gateway.net, rather than relying solely upon the PC business, which seems to become less profitable by the day. " news.com

To: gnuman who wrote (65193)	7/24/1999 4:56:00 PM
From: Fred Fahmy	Read Replies (2) \| Respond to of 132070

Gene, <A point on this thread is that makers are scrambling for ways to generate revenue and profit growth.> Most successful companies are always looking for ways to grow their businesses. This often means expanding into other related businesses or other businesses that promote the sales of their core product. This is hardly unique to the box makers and I wouldn't characterize it as "scrambling". More like sound business sense as opposed to living purely on past successes. Using the internet to sell more PC's is a no-brainer IMO. Intel is expanding ("scrambling") into networking and bandwidth relief to grow the business both directly (new businesses adding revenue and profit) and indirectly by increasing the demand/need for more and better CPU's. Re: GTW margins GTW had stable margins (much to the surprise, dismay, and year after year prediction of many of the pundits) before they entered into other businesses. PC prices haven't been coming down in a vacuum ...component prices have been coming down also. <Wonder what comes after free ISP's when that taps out? > Who knows??....marketing people (as you well know) have a lot of imagination. FF

To: gnuman who wrote (65193)	7/24/1999 6:33:00 PM
From: Knighty Tin	Respond to of 132070

Gene, Earlier, I was questioning the ISP component of "PC Sales" for the entire industry. I really have no idea how they divvy up the sales dollar. I also don't know how they account for the "trade in" value under the "You're StupidWare" plan. Guess I have some 10Q homework to do. I do know one thing. If ISPs give away computers, how does a stand alone ISP make any money? They have to lower prices, which immediately cuts into whatever profit margin the boxmaker thought he was getting from the ISP wraparound. This is basically the "free monitor and printer and a GE t.v." game that's been going on for years.