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To: Paul Engel who wrote (42836)	12/19/1997 7:30:00 AM
From: Road Walker	Read Replies (6) \| Respond to of 186894

Paul, re: "The per cent of Compaq's total sales that is sub $1,000 is "single digits"." They must not being telling the truth, I've read EVERYWHERE, from the WSJ to USA Today to Business Week to my local paper that virtually every other computer sold is under 1K. Could all the media be wrong? Seriously, I was surprised it was such a low percentage. Paul, thanks for the information. John

To: Paul Engel who wrote (42836)	12/19/1997 8:58:00 AM
From: gnuman	Read Replies (2) \| Respond to of 186894

Re; Compaq sub-zeros. (Numbers derived by me from IDC reports). My estimate is that Compaq will ship 15-20% of it's product as sub-zeros. Of course this will be less than 10% of "sales" But it does represent a trend. Also, more than 50% of their shipments are into homes! W/W shipments Compaq's Q3'97 W/W shipments of PC's was 2.7 Mil units. Total all Q3'97 PC's shipped was 19.6 mil units. Q4 shipments are estimated up 20% year to year, and if the share is constant, Compaq will ship approx. 3 Mil units and total will be approx. 21 Mil. Home PC's Compaq shipped 1.6 Mil units into the home market in Q3, and W/W home PC's were 8.4 mil units for this quarter. Estimates of Q4 home PC shipments are Compaq, 1.7 Mil units and W/W 9 mil units. (Note that 58% of Compaq's Q3 shipments were into the home market, while W/W only 43% went into homes). In the home PC market alone it's estimated more than 5 Mil sub-zeros will ship in 2H'97. Compaq has 19% of the home PC market. Now for some conjecture. If Compaq captures 20% of the 2H Home PC sub-zeros, we're looking at 1 Mil units, or 17% of Compaq's total shipments. Based on Compaq being the dominant supplier of Cyrix mediaGX, and all the sub-zero P54/55 166/200 MHZ units they have shipped, I wouldn't be surprised if this number is higher. I also think there are significant numbers of sub-0's going into the SOHO market.