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To: jim kelley who wrote (24960)12/12/1997 6:30:00 PM
From: ed  Respond to of 176387
 
It all depends on where those two retail stores located, because the economic conditions
are different from areas to areas across the country. If the two retail store located at a
small town in Alabama, you probably see them sell nothing at all !!!!

Last year The worldwide total desktop PCs shipment is around 87 Million units, let's assume a 13% annual growth rate, so this year's should be around 100 million units desktop pcs to
be shipped. Let's say CPQ's market share is around 14% , and we further assume all
desktop pcs sold by CPQ are sub $1000 pcs (actually that is not the case), with $70 profit
per sub $1000 pcs, you may calculate CPQ's gross profit on desktop pc sales in the world market of this year (very conservative) !!!! ------> 1.4 billion gross profit on desktop pcs
at least in 1998. Here , the estimation did not include note book computers, high end PCs,
servers, workstations and service sold !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!



To: jim kelley who wrote (24960)12/12/1997 7:01:00 PM
From: Elwood P. Dowd  Read Replies (2) | Respond to of 176387
 
Why do they carry them??? The "step up" business must be incredible. The advertising swat and draw that they get out of a $799. computer in itself makes it worth having, even if they don't sell a single unit, not to mention the store exposure that they get and repeat business of other non-computer related items (like refrigerators, ranges, stereos, tvs, etc.), especially in stores like Best Buy. I live in a community made up predominately of middle/lower middle class people. Good people. They shop at Wal-Mart and K-Mart and they want computers, too. Not everyone in this world can drive a Mercedes and own a Harley Davidson, so they settle for Chevrolets and Hondas, but they still get there. Most on these threads can afford to buy a loaded up $3000.00 computer, but that's not the real world. Sub Zeros give everybody a chance to surf the web. What about quality and durability? My best analogy is that my 5 year old S-10, 4 cylinder, stickshift pickup truck is far more reliable than the 2 "luxury" cars I've owned over that same 5 years. Am I the only "fast-floor", big ticket, high volume retailer on this thread??? Stephen