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Technology Stocks : Applied Micro Circuits Corp (AMCC) -- Ignore unavailable to you. Want to Upgrade?

To: Drake who wrote (239)	10/21/1999 8:03:00 AM
From: SJS	Read Replies (1) \| Respond to of 1805

Drake, IBM indicated that they are curtailing the Aptiva PC business, which requires a "new" product definition, pricing points etc. That means that they aren't doing well in PC's and need to relook at that segment. I also posted a few weeks ago (probably on the LTD thread) that PC prices are going to RISE into the holiday selling season, not fall. The reason for this is due to memory price rises (that shouldn't be new news now, thanks to DELL...) and graphics chip rises, and most likely, other sub-component shortages. So.....consumers, conditioned for increasingly lower prices each day (some of these machines are now close to free....), are going to see some firmness, and even increases on some. Whoa! That's a switch, huh? As for Y2K pressures, Charles Padilla at SG Cowen explained Y2K pressures this morning on CNBC as not so much that the power to your house or checking account will be screwy, but rather there will be commerce and supply issues. When a company needs head gaskets from Bolivia, or Brazil, those non-compliant Y2K countries may disrupt product flows for components and sub-assemblies, and consequently the sales ability of US based companies. So guess what? This will directly lower some companies earnings for Q1 or even into Q2. You should evaluate each company you own and adjust your expectation for earnings, if possible. Expectations for IBM's profits, I think according to them, are going to affected on both the supply side and the sales side. Customers are delaying orders for IBM's products on Y2K concerns. Steve