John Connors Demand Quotations

OEM revenue was light as demand for business PCs remained slow in the quarter, and we remain guarded about near-term growth. However, PC demand appeared to pick up late in the quarter, and with the launch of Windows 2000, we are excited about the opportunity to help customers migrate to this new generation of platform products.

We are cautious about the next quarter. We want to see business PC demand pick up, and the next quarter is a tough comparable quarter because of last year's launch of Office 2000.

While we are enthusiastic about the break-through products and services the company will be delivering in 2001, we remain guarded about the near-term economic outlook and its impact on PC demand and technology spending,

Consumer and corporate demand for PCs continued to exceed our expectations,

There is not much change in the health of the PC ecosystem. Demand from business customers continued to be challenging. We did not see robust corporate demand,