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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Petz who wrote (83891)	12/21/1999 8:25:00 PM
From: Road Walker	Read Replies (5) \| Respond to of 1571785

John, re: Micron shortfall - "citing fewer shipments of PCs, partly due to limited supply of 733-MHz desktop processors." To a casual observer, it would appear that Micron customers wanted the 733 MHz Intel system, and would prefer to wait, rather than buying another system. I suppose you will suggest that all those folks that couldn't get a 733 Intel chip, went out and bought an Athlon based system? I have a feeling the folks on this thread are setting themselves up for a major disappointment, probably soon, maybe later. John

To: Petz who wrote (83891)	12/22/1999 1:34:00 AM
From: tejek	Read Replies (1) \| Respond to of 1571785

RE Sequentially, Micron Electronics said PC sales were down more than 4 percent, from $270 million, in the fourth quarter of 1999, citing fewer shipments of PCs, partly due to limited supply of 733-MHz desktop processors. Petz, I think this is only part of the reason for the shortfall. I think demand may not be there. Either that, or Micron can't sell its pcs anymore. To have a 12.5% decline of revs from quarter one of last year when demand was weak (no Asia or Japan) to this quarter when demand is supposed to be strong, doesn't make sense. The other part that is disconcerting has to do with this quarter's Gross Margin. The ceo of MUEI was quick to point out that the company's GM increased from 17.1% to 24.6%, but when you look at the break out, the pc systems margin declined from 15% to 13.9%, meaning that expenses are rising faster than price increases. Its the thing that is concerning the analysts' who follow the box makers and why their stock prices are caught in limbo. With margin's declining, they can't improve on their profits. I have got to believe there will be an industry wide shakeout and consolidation soon. ted