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


To: Eggolas Moria who wrote (56903)4/22/1999 9:09:00 AM
From: BGR  Read Replies (1) | Respond to of 132070
 
Gary,

IBM also increased their unit sales at the same time. This means substantial revenue improvement, which may or may not translate to a profit enhancement depending on their business model. But, for a company like DELL, a flat ASP even will result in huge revenue gains (as it is increasing unit sales by as much as 3 times the industry average) and consequent profit enhancement because of its superb model.

My question is this, and I would like this thread's opinion on that, could this mean that corporate sales (since laptops are primarily not consumer market goods) are quite healthy and that there is an excellent market there? My understanding has been (and please correct me if I am wrong) that many in this thread believe that the only growth sector left is the sub-1k one, which by account of it's razor thin margins can only hurt those who engage in that market. DELL, of course, has planned to grow in the corporate market. Could this be an early indication that it is a perfectly valid and viable strategy?

Thanks for all responses in advance!

-BGR.