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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (48552)	2/24/1999 12:41:00 AM
From: Skeeter Bug	Read Replies (3) \| Respond to of 132070

bby is the source of asp fall, not comp usa. best, skeets...

To: Knighty Tin who wrote (48552)	2/24/1999 11:36:00 AM
From: Eggolas Moria	Respond to of 132070

<<Gary, Sales and revenues are the same thing. >> Indeed. Of course, footnotes are quite helpful in this regard. I was actually more interested in the difference between average and weighted selling/revenue prices. Whatever could those two mean in the context of reporting PC sales?<g> <<I look at CompUSA, the largest retailer, and they say ASPs for pcs were down 20%.>> Interesting. I must have missed that in the 10-Q, although I did find it in the press release. But the decline was for the quarter, not the average during the entire year. For example, according to the November press release, the ASPs had fallen 15% for that quarter. <<I assume, and I don't think this is a bad assumption, that the big players gaining market share in unit sales had less ASP deterioration than the smaller players who lost market share.>> This is a pretty good assumption IMO. For example, according to the ACER press release, their ASPs fell 22.1% for its third quarter (a 6.2% decline in ASPs from the previous quarter). <<the promotional money does not reduce ASP. It increases cost of sales. This is a way to whistle past the graveyard.>> This was my basic understanding also as I read a recent research report that underscored the practice (while keeping a buy recommendation of course).