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To: DiViT who wrote (111924)	3/24/1999 8:10:00 PM
From: Mohan Marette	Respond to of 176387

Ref:IBM lost +$900 million-Great so much for the damn competition....> DiVit: funny people still don't get it. The article says IBM lost money in PC biz in 97 and 98 and hoping for breaking even in 99,I am not so sure they will make any money in 99 either. As you know Compaq is upto their usual trick of stuffing channels whenever they can,price cuts follows to clear the 'stuffing' everybody and his mother-in-law follow suit except Dell,well you know the routine. The anal-guys (ooops analysts) still think Dell 55% earnings growth is nothing and got CPQ,IBM and other as 'strong buys',yup that is the ticket. =================== IBM's PC business lost $992 million in '98 By Bloomberg News Special to CNET News.com March 24, 1999, 4:10 p.m. PT IBM's personal computer business lost $992 million last year as the world's No. 1 computer maker cut prices to keep up with rivals. The pretax loss widened from $161 million in 1997, according to the company's annual report. PC revenue fell 11 percent to $12.8 billion from $14.4 billion. Compaq Computer early last year began cutting prices to clear out a mountain of PCs stacking up with distributors and dealers. The cuts spurred IBM, Hewlett-Packard, and others to respond, dragging down revenue and profit. The problem eased, and IBM said its PC business was profitable in the fourth quarter. "Compaq created a [distribution] channel overload. Everyone lost money," said Stephen Dube, a Wasserstein Perella analyst who rates IBM "buy." --------------------------------------- Mohan: Well hello ,No, not everyone lost money. -------------------------------------- IBM could add 70 cents a share to its 1999 earnings if its PC business breaks even, Dube said. Concerns about IBM's other computer businesses persist. IBM shares fell 5.2 percent Friday on worries about lower mainframe sales.

To: DiViT who wrote (111924)	3/24/1999 9:58:00 PM
From: Boplicity	Read Replies (1) \| Respond to of 176387

BM's PC Business Lost $1B Last Year Get Quote, Company Info: IBM .c The Associated Press NEW YORK (March 24) - IBM lost nearly $1 billion selling personal computers last year, sharply higher than each of the previous two years, the world's largest computer company disclosed in a federal filing. The pretax loss reinvigorated suggestions from Wall Street on Wednesday that IBM get out of the PC business that it pioneered and instead focus on selling corporate machines, software and computer advice. IBM has not previously disclosed its PC losses, but new accounting rules stipulate that companies give more detailed financial results to investors. The late Tuesday filing showed IBM lost $992 million in 1998, $161 million in 1997 and $39 million in 1996. Steve Milunovich, an analyst with Merrill Lynch & Co., said IBM's range of businesses was too broad to efficiently sell personal computers and still make money. Prices of PCs have fallen sharply over the past two years, narrowing the profits manufacturers make on the machines. Profits are greater on selling powerful computers to businesses. ''IBM is not a consumer company,'' Milunovich said. ''They need to focus on corporate computing. and let DELL sell branded PC for them Separately Wednesday, EMC Corp. agreed to purchase IBM disk drives for its computer data-storage systems as part of a five-year alliance valued at $3 billion. IBM's stock rose more than 2 percent, up $4.12 1/2 to $169.50, on the New York Stock Exchange.