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.

Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (77314)	11/30/1999 11:20:00 AM
From: Cynic 2005	Respond to of 86076

Don't tell BGR as this news doesn't fit his drivel. -g- ---------- 8:48 ET ****** PC Sales The market has moved its attention from computer power and storage to bandwidth and content, but this is interesting nonetheless. CNET has a story this morning that October was a slow month for retail PC sales. Specifically, they report that PC Data of Reston, Virginia computes a 9.7% drop in total revenue from PC sales this October compared to last October. Unit sales were up 21% year-over-year, which sounds pretty good, but that was more than offset by a 25% drop in the average selling price to an amazingly low $800. The revenue figure is the key statistic, as that reflects the dollars in the door for manufacturers. It should be noted that PC Data says that September sales promotions drew some sales into that month from October, but the data are significant nonetheless. They reflect the steady trend towards lower pricing that is squeezing many box makers. The top five sellers, according to PC Data, were: Compaq (with a strong month), Hewlett-Packard, Emachines, Apple, and IBM. Compaq (CPQ) stock has been a laggard for years, and HWP and IBM have been getting most of their stock momentum from sectors other than retail PC sales. Apple (AAPL 94 9/16), on the other hand, has been hot. And this morning, DLJ is raising its price target from an outdated 95 to 140 and it earnings estimates for next year, saying that retail sales are strong. The lesson for investors here is that one must be selective in buying retail hardware stocks these days, as there is no longer a huge underlying revenue wave. Furthermore, these data raise some suspicions that the the holiday season electronics retailing environment may not be quite as profitable as some of the current enthusiasm suggests. - DG.