Comments on: IBM’s Consumer Business: Tell The Story, Boost The Share Price, Deepen Customer Relationships http://www.redmonk.com/jgovernor/2007/11/07/ibms-consumer-business-tell-the-story-boost-the-share-price-deepen-customer-relationships/ An industry analyst blog looking at software ecosystems and convergence Wed, 15 Oct 2008 22:45:07 +0000 http://wordpress.org/?v=2.6 By: John Smith http://www.redmonk.com/jgovernor/2007/11/07/ibms-consumer-business-tell-the-story-boost-the-share-price-deepen-customer-relationships/#comment-374523 John Smith Sat, 17 May 2008 12:19:11 +0000 http://www.redmonk.com/jgovernor/2007/11/07/ibms-consumer-business-tell-the-story-boost-the-share-price-deepen-customer-relationships/#comment-374523 OK, so has someone been reading this blog in IBM? What gives with their share price now? You wrote this back in November, 2007 and now, May 2008, the share price is powering ahead. It was around $100, and is now on its way to $130. Is this your doing? OK, so has someone been reading this blog in IBM? What gives with their share price now? You wrote this back in November, 2007 and now, May 2008, the share price is powering ahead.

It was around $100, and is now on its way to $130. Is this your doing?

]]> By: jgovernor http://www.redmonk.com/jgovernor/2007/11/07/ibms-consumer-business-tell-the-story-boost-the-share-price-deepen-customer-relationships/#comment-209648 jgovernor Tue, 20 Nov 2007 09:40:14 +0000 http://www.redmonk.com/jgovernor/2007/11/07/ibms-consumer-business-tell-the-story-boost-the-share-price-deepen-customer-relationships/#comment-209648 hey - some dude. i found HP's latest set of results pretty interesting. obviously its just one data point, but according to the FT over the past quarter IBM shares have drifted down 10% or so. HP only 5%. Now HP has reported outstanding sales of laptops to consumers in Asia. http://www.ft.com/cms/s/0/d93901d2-96f4-11dc-b2da-0000779fd2ac.html?nclick_check=1 "A worldwide shift away from desktop machines towards portable computers boosted sales of notebooks by 49 per cent from a year before. Overall PC revenues grew by 30 per cent. HP has been benefiting in particular from a consumer-led adoption of technology in emerging countries, said Mr Hurd. PC sales in China, the company’s third-biggest market, more than doubled from a year ago." hey - some dude. i found HP’s latest set of results pretty interesting. obviously its just one data point, but according to the FT over the past quarter IBM shares have drifted down 10% or so. HP only 5%. Now HP has reported outstanding sales of laptops to consumers in Asia.

http://www.ft.com/cms/s/0/d93901d2-96f4-11dc-b2da-0000779fd2ac.html?nclick_check=1

“A worldwide shift away from desktop machines towards portable computers boosted sales of notebooks by 49 per cent from a year before. Overall PC revenues grew by 30 per cent.

HP has been benefiting in particular from a consumer-led adoption of technology in emerging countries, said Mr Hurd. PC sales in China, the company’s third-biggest market, more than doubled from a year ago.”

]]> By: jgovernor http://www.redmonk.com/jgovernor/2007/11/07/ibms-consumer-business-tell-the-story-boost-the-share-price-deepen-customer-relationships/#comment-208556 jgovernor Mon, 19 Nov 2007 17:33:52 +0000 http://www.redmonk.com/jgovernor/2007/11/07/ibms-consumer-business-tell-the-story-boost-the-share-price-deepen-customer-relationships/#comment-208556 hey some dude. re point 1 i think that's kind of my point in a nutshell. unless you're saying you can't imagine a "consumer design services" company that didn't actually sell to consumers...? on amazon- i think growth is an important part of any M&A story. its no good buying after the fact. but there are yield management questions here to consider. 2. on HP another great point. I don't think i was saying any consumer story drives growth and P/E ratios-but good ones do. hey some dude. re point 1 i think that’s kind of my point in a nutshell. unless you’re saying you can’t imagine a “consumer design services” company that didn’t actually sell to consumers…?

on amazon- i think growth is an important part of any M&A story. its no good buying after the fact. but there are yield management questions here to consider.

2. on HP another great point. I don’t think i was saying any consumer story drives growth and P/E ratios-but good ones do.

]]> By: Some Dude http://www.redmonk.com/jgovernor/2007/11/07/ibms-consumer-business-tell-the-story-boost-the-share-price-deepen-customer-relationships/#comment-200232 Some Dude Thu, 08 Nov 2007 18:55:30 +0000 http://www.redmonk.com/jgovernor/2007/11/07/ibms-consumer-business-tell-the-story-boost-the-share-price-deepen-customer-relationships/#comment-200232 Two points: 1. Selling chips to business's that end up in consumer devices is not "consumer business". You need to understand the consumer (styling , cool , etc) to be in the business. Your point of IBM aquiring Amazon would be valid is S3 and EC2 were atleast > 50% of amazon business. Buying a consumer company for the side benefits does not make sense. And besides IBM made a choice - IT got out of the consumer business completely by selling PC to lenova. 2. Quote - "We know that spanning consumer and enterprise can drive incredible valuations". Dont know if true ??? Look at HP , the only technology company in the world that spans consumers to Enterprise end to end. and look at its multiple. Revenue > 100 B but market cap Two points:
1. Selling chips to business’s that end up in consumer devices is not “consumer business”. You need to understand the consumer (styling , cool , etc) to be in the business.

Your point of IBM aquiring Amazon would be valid is S3 and EC2 were atleast > 50% of amazon business. Buying a consumer company for the side benefits does not make sense. And besides IBM made a choice - IT got out of the consumer business completely by selling PC to lenova.

2. Quote - “We know that spanning consumer and enterprise can drive incredible valuations”.
Dont know if true ??? Look at HP , the only technology company in the world that spans consumers to Enterprise end to end. and look at its multiple. Revenue > 100 B but market cap

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