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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: D.J.Smyth who wrote (167854)	11/15/2001 7:19:31 PM
From: John Koligman	Read Replies (1) \| Respond to of 176387

D.J. Despite the best efforts of the Dell true believers, it appears that IBM just won't cry uncle <ggg>. Regards, John IBM Restates Commitment to PC Business Amid Analysts' Cry to Abandon Operation By a WALL STREET JOURNAL Staff Reporter Advertisement ARMONK, N.Y. -- International Business Machines Corp. remains committed to producing personal computers, even though it gets almost 60% of its revenue and 75% of its profit from software and services, Samuel J. Palmisano, president and chief operating officer, said in a meeting with analysts. The strong endorsement for IBM's PC business comes at a time when it is continuing to post losses and many analysts are urging IBM to leave the business. While IBM as a whole was profitable, its PC unit reported a pretax loss of $136 million for the first nine months of this year. Mr. Palmisano, who is widely expected to succeed IBM CEO Louis V. Gerstner next year, said "we can make this business better." He noted that losses have been limited because two years ago, IBM stopped selling through retail stores, and consumers can buy IBM PCs and laptops only through its Web site. He said that in the U.S., where many orders are handled over the Internet, "we're making a little bit of money." IBM aims to return to profitability in Europe by increasing direct sales. Mr. Palmisano also said IBM gets hidden benefits from the PC business because it makes money on financing them and servicing them. The IBM president made the remarks at the company's semiannual conference for securities analysts, at which the company typically discusses corporate strategy.