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To: ptanner who wrote (171340)	9/29/2002 6:17:20 AM
From: Road Walker	Respond to of 186894

re: Wouldn't this be a real trick since current gross margins are about 50%? Perhaps you meant net margin? You couldn't triple your gross margin percent but you could triple your gross margin dollars with an increase in asp's.

To: ptanner who wrote (171340)	9/29/2002 1:17:45 PM
From: Dan3	Read Replies (1) \| Respond to of 186894

Re: Wouldn't this be a real trick since current gross margins are about 50%? I should have used the term profit instead of margin. I posted that their present gross margin (should have used the term profit), on a typical business desktop, is around $75 per PC, while Microsoft gets something like $250. If they double their gross profit, per PC, to $150 (which is what they used to get when AMD was weak and Microsoft was getting about $150 per PC) they'd double their per PC profit. Isn't it interesting that, as the ASP of a desktop has fallen drastically over the past couple of years, Microsoft's per PC revenue has increased? Sorry for any confusion.