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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Tony Viola who wrote (8808)	1/19/2000 6:34:00 PM
From: Tony Viola	Read Replies (3) \| Respond to of 17183

I looked at IBM's report to see if I could find anything of interest to EMC. I found this a little puzzling: Shipments of IBM's new "Shark" disk storage product were strong in the quarter, although overall storage revenues declined largely as a result of ongoing price pressures in hard disk drives. The overall hardware gross profit margin declined to 26.6 percent from 34.2 percent. That seems like a pretty lame excuse for revenues being down in a quarter when a product gets introduced. Why didn't they make it up on volume? No joke, IBM was claiming to be shipping multi petabytes of Shark. Also, IBM makes hard drives, and they would be the main storage component in the Shark product. Hard drive prices are continually being driven down, yes, but the selling price of the big storage systems stays up. Yet, gross margins were down a lot. I give up. Is IBM getting fat again? EMC lean. IBM fat. Tony