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To: GP Kavanaugh who wrote (80377)	5/3/1999 2:57:00 PM
From: Alohal	Respond to of 186894

GP, thanks for the great post, best analysis I've seen yet on future of emachines and impact on the industry. I especially liked hearing that Dell was the least vulnerable! Mahalo. << Dell -- Least vulnerable, most in control of its destiny. Consumer is only about 15% of Dell's business. Within consumer, Dell has mastered the art of using direct customer relationships to segment out the most sophisticated, high-budgeted buyers and therefore has the most profitable, highest ASP consumer business in the industry. Dell recently disclosed plans to begin pursuing sub-$1,000 consumer sales, but initially only at high triple-digit price points, and only at attractive profitability levels. We think Dell's consistent 60%-80% unit growth rate in consumer over the last two years is sufficient evidence there's little defensive about Dell's current strategy. To the contrary, we view Dell as methodical in moving gradually to lower price points as improved efficiencies and product mixes allow stable operating margins.>>

To: GP Kavanaugh who wrote (80377)	5/3/1999 9:28:00 PM
From: Amy J	Read Replies (1) \| Respond to of 186894

GP, great report on eMachines. Who at MS researched/wrote it? How do you get their reports? I think this is also a great report covering the consumer market. Don't normally see reports full of great detail like this. Their analysis of the consumer market is quite good. I may have missed this, but what was the overall PC consumer retail vs. PC corp revenue breakdown? I noticed Dell's customer base is 15% consumer, the rest of Dell's biz is corporate. It would be nice to see a study on the PC server market (i.e. impact of Merced, PC server farms, website server growth, corporate servers etc.) as well as retail. I liked the part below too, as it relates to the consumer retail market. RE: "The arrival of 'fat pipes' into the home is the best hope for ASP stabilization, although we're probably a year or more away from the benefits becoming material on an industry level. Broadband links allowing, among other things, real-time video and easy access to large data files" Excellent report on eMachines. I hope they also write an overall industry report on the PC server/retail market. Amy J