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

To: Knighty Tin who wrote (71755)	12/10/1999 5:57:00 PM
From: re3	Read Replies (1) \| Respond to of 132070

michael, riddle me this ? let's say linux is the biggest thing since sliced bread if so, then shouldn't the market cap of msft decline by an equivalent amount that the linux mkt caps are ?

To: Knighty Tin who wrote (71755)	12/10/1999 7:57:00 PM
From: Les H	Read Replies (1) \| Respond to of 132070

One sign that the PC/ISP combo has maxed out. Circuit City is now offering the $ 400 rebate as long as you buy an appliance of equal or greater value. That just goes to show how throwing capital at a sector distorts economic statistics and also makes one wonder whether stocks are consummable items.

To: Knighty Tin who wrote (71755)	12/12/1999 7:09:00 PM
From: nihil	Read Replies (1) \| Respond to of 132070

IMO the revenue growth or ASP in PC's is largely irrelevant to the profitability of the industry. The critical thing is value added. When one considers how much in recent years memory, disk, and monitor cost have decreased, it is clear that CGS/unit has decreased so it is possible that VA/unit could have increased or decreased. Similarly, as you say, unit sales are largely irrelevant. The profit pressures on big PC companies are concentrated in the less efficient (all but DELL and GTW) and the components suppliers.