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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Craig Lieberman who wrote (118269)	4/17/1999 11:08:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

Craig:Speaking of PIII PC sales, looks like they are doing just fine. in spite of Poyner's (Oppenheimer) comment -'Piii is a dud'-shows what his analysis is worth. The week in review: How's the PC really doing? By Kurt Oeler Staff Writer, CNET News.com April 17, 1999, 6:00 a.m. PT Late last Friday, Compaq surprised Wall Street by warning its first-quarter earnings would be about half of expectations, setting off a grand debate about the industry's health. Chief executive Eckhard Pfeiffer said Compaq's problems are rooted in weak demand, intense price wars, and an unfavorable mix of lower-margin products. But suspicions that larger forces are buffeting the PC industry couldn't be suppressed. Is the PC dead? As the market sagged Monday morning, Hewlett-Packard and Gateway announced new programs to reach small business customers, unintentionally underlining the struggles traditional PC manufacturers have faced in dealing with the successful "direct sales" model of Gateway and Dell. Introducing new server computers the next day, HP chief executive Lew Platt acknowledged that average selling prices for corporate PCs are falling but said the company is "on its way" to making money from that sector. Platt also took issue with Compaq's statement that demand is weak and scoffed at IBM chairman Lou Gerstner's widely quoted view that the PC era is over. At the end of the week, IBM's new general manager at its Personal Systems Group said that the PC is far from dead, echoing revisionist comments being made by other executives and dampening speculation that IBM is going to get out of the PC business. Separately, despite the surge in demand for sub-$600 computers, high-end Pentium III-based PCs have managed to rack up respectable sales among consumers, providing some hope to PC makers who have been pummeling each other in the low-cost arena.