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To: Arrow Hd. who wrote (4856)3/27/1999 8:58:00 AM
From: Seeker2007  Read Replies (1) | Respond to of 8218
 
I think that the concern is more on the wisdom of broad
cross licensing of patents to a screwdriver shop like Dell
for ~2 bn/yr in incremental sales. I hope that (1) the
margins on these component sales to Dell are good and
(2) there is requirement that Dell has to purchase a minimum
$ amount of components to justify giving Dell access to
all of IBM's patented intellectual property. Plus ofcourse
the points you make in your post.



To: Arrow Hd. who wrote (4856)3/28/1999 4:52:00 PM
From: Jules B. Garfunkel  Read Replies (3) | Respond to of 8218
 
Arrow,
Your, "So the OEM concept plays well when it is true incremental business and not in lieu of your own logo'd products."

But a good percentage WILL be in lieu of their own logo'd products.
Won't IBM's GPMs be significantly reduced as a result? Up until recently IBM's Hardware Division was returning 72% margins. Most certainly IBM will not be able to maintain that rate GPM with their OEM's

Jules


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