02-18-2002, 09:46 PM
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Executive Editor
Join Date: Aug 2006
Posts: 29,160
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Handheld computers take focus from PCs
http://www.usatoday.com/life/cyber/tech/review/2002/2/18/handhelds.htm
So PDAs are a growth industry eh? Good to know - I might stick around after all then. ;-)
"As PCs sales flounder, tech companies are investing in products geared to the fast-growing handheld market. Sales of handheld computers, such as personal digital assistants and portable email devices, are expected to grow 44% from 2002 to 2004, says Gartner Dataquest. PC sales are expected to increase 21% during the same period. At that rate, it will take until 2004 for the PC market to return to its size at the height of the tech boom."
I found this quote to be quite shocking:
"But handhelds are lucrative, says Gartner analyst Todd Kort. Some handhelds can sell for a 50% profit margin or more, Kort says, while PCs are often sold at a loss."
50% profit margin? Holy gross margin Batman! Source: Robert Bogue
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02-18-2002, 09:54 PM
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Intellectual
Join Date: Jan 2007
Posts: 243
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Handheld computers take focus from PCs
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Originally Posted by Jason Dunn
I found this quote to be quite shocking:
"But handhelds are lucrative, says Gartner analyst Todd Kort. Some handhelds can sell for a 50% profit margin or more, Kort says, while PCs are often sold at a loss."
50% profit margin? Holy gross margin Batman! Source: Robert Bogue
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I've long suspected that. It's not like they had to invent much technology to build these, it was mostly all integration and when you choose the right parts, that's dirt cheap.
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02-18-2002, 09:55 PM
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Philosopher
Join Date: Jun 2006
Posts: 556
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Handheld computers take focus from PCs
Quote:
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Originally Posted by Jason Dunn
50% profit margin? Holy gross margin Batman! Source: Robert Bogue
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no wonder Compaq was lately showing sound financial results while around stormy waters destroyed profits of others
the war is just beginning: mobile phone vendors will join current PDA manufacturers, and then, Jason, I can tell you only one thing:
YOU AIN'T SEEN NOTHING YET
says who? says jpzr from http://WirelessSoftware.info
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02-18-2002, 09:58 PM
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Ponderer
Join Date: Feb 2002
Posts: 95
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Bottom line: Pocket PC manufacturers are ripping us...
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02-18-2002, 10:29 PM
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Neophyte
Join Date: Aug 2003
Posts: 8
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Get real people.
The 50% profit margin can only be achieved under optimal circumstances. E.g. big Asian (usually OEM) manufacturer selling directly.
Go thru retail, and buy as reseller (e.g. Casio) from an OEM, there is *no way* you can have a 50% profit margin...
Oz
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02-18-2002, 10:35 PM
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Executive Editor
Join Date: Aug 2006
Posts: 29,160
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Quote:
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Originally Posted by innersky
Bottom line: Pocket PC manufacturers are ripping us...
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Nah, I don't think this is all of them. I'd be surprised if Compaq was hitting 20% profit margin.
People like us adopting cutting-edge technologies pay the way for others to follow us years later. It's the way the technology industry works... :-)
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02-18-2002, 10:36 PM
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Mystic
Join Date: Jul 2003
Posts: 1,768
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margin shrinking
As this industry grows and there is more parity, we will see price erosion, just like in other industries. We are probably 12-18 months away from standard PocketPCs being sold for $200-250.
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02-18-2002, 10:38 PM
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Ponderer
Join Date: Feb 2002
Posts: 95
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Quote:
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Originally Posted by Jason Dunn
Quote:
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Originally Posted by innersky
Bottom line: Pocket PC manufacturers are ripping us...
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Nah, I don't think this is all of them. I'd be surprised if Compaq was hitting 20% profit margin.
People like us adopting cutting-edge technologies pay the way for others to follow us years later. It's the way the technology industry works... :-) |
It's a dirty job, but somebody has to do it :wink:
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02-18-2002, 10:57 PM
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Thinker
Join Date: Feb 2002
Posts: 414
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margin shrinking
The big study that caused such an uproar last month about Palm loosing out to PPC by 2005 stated that PPC prices by the end of 2002 would range from $100-$700 (I am guessing that low figure was for some prototype mono unit like the HP Linux model that never made it to market.)
Only 14 months ago Palm was reporting 40% margins on their hardware sales. That is, they were paying the Southeastern Asian company that was making the Vxs $180, wholesale them to Best Buy for $300 and Best Buy was selling them for like $350. The profits on these things must be incredible and offer a LOT of room for movement.
Best Buy was selling Ipaq 3765s for $350 after rebate, last December. The Palm M100 that sells for $85-100 here sells for $40 in Japan. And if Palm is losing money they are not losing much. Most of their losses are coming from too many high-paid execs, projected building, and wasting money buying other companies when they could have been building PDAs.
When all the companies that were finaly convinced by PPC 2000-2002 to make the hardware all get fully online with manufacturing a standard model with dual slots, and all the other basics, we will see prices come down to the $370 that Gartner predicts the average PPC model to sell for by the end of this year. I say about time.
Quote:
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Originally Posted by JonnoB
As this industry grows and there is more parity, we will see price erosion, just like in other industries. We are probably 12-18 months away from standard PocketPCs being sold for $200-250.
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02-19-2002, 12:53 AM
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Pupil
Join Date: Feb 2002
Posts: 13
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that way i see it:
if there is a 50% margin ... it may be good news for us ... the idea is that there is still lots of room for price drops as the war on pdas get more intance. so by year end or maybe early next year, the average price for pdas will be a lot cheapter than they are today.
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