CompuServe Messages

Commodores announcement was unexpected. But my opinion is that things should be back on track soon. The dollar did rise strongly, and affected sales in DOLLAR terms, but the german mark is back down now, to around 186 from its high of 210. The reason the dollar had been so strong was 1> China fears 2> Political problems in Germany and Japan 3> A 10% withholding tax on German interest income which has been repealed effecive July 1, 1989. The dollar is back down SIGNIFICANTLY now, so I think the dollar translation effect will diminish from here on in. Commodore, as a company is doing OK. Sales were up worldwide, probably at double digit rates in LOCAL currency terms. This is despite a general slowdown in home computer sales. All this means that the Amiga is doing just fine, and probably the clones are too, and markets are beginning to expand in niche areas. The worse than expected earnings comparison is almost purely caused by currency translation, not lack of business. Meanwhile, Commodore is continuing to build infrastructure, particularly with the hiring of a number of experienced top executives. In the past few months they have hired AWAY from IBM, Compaq, Apple, Xerox, HP, Olivetti and NEC. These guys would not be going to Commodore if they thought prospects were lousy. The U.S. market will still take some work, but if anyone can do it, Copperman can. A year from now, we will all look back at the June quarter, and say it was a blip in the big picture, and that the Amiga was transformed from a subsurface cult machine, to a mainstream, accepted computer.