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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: rupert1 who wrote (73634)	12/11/1999 7:46:00 PM
From: Paul van Wijk	Read Replies (1) \| Respond to of 97611

I suppose there could be an era a few years away when a CPQ could use its quasi-monpolistic command of PC manufacturing to begin to make it profitable again. PC's? A few years away? I'm afraid at that time PC's will be history. Paul

To: rupert1 who wrote (73634)	12/11/1999 10:16:00 PM
From: Salah Mohamed	Read Replies (2) \| Respond to of 97611

Victor ... About Commercial PC's >>Capellas has said that he expects commercial PC revenues to be 15% of overall revenues in a couple of years Capellas never said that, I think there is some confusion here. He said the iPaq revenues will be 10%-15% of CPQ commercial PC revenues in the first year rising to 40%-60% over the the next 2-3 years.

To: rupert1 who wrote (73634)	12/12/1999 11:51:00 AM
From: rudedog	Read Replies (1) \| Respond to of 97611

Victor - I think the comment was made in the CC but I can't remember exactly. I think this was a general statement of the trend of PC growth and falling ASPs in the commercial sector versus the growth in the enterprise segment. He also said one goal was to get the PC business back to profitability while sustaining unit growth and market share leadership - that clearly is a falling ASP scenario but argues against a loss-leader strategy subsidised by other products. Products like the iPaq which radically reduce the base cost by consolidating components and eliminate inventory costs with a pure BTO process, clearly accelerate this trend, as we have discussed. The reduction in percentage revenue from commercial desktops strikes me as more of a result than a driver, but it would have the incidental effect you describe - shifts in the profitability or growth in the commercial PC business would have much less impact than they do today on overall corporate revenues.