Florida subpoenas data of Packard Bell; marketing method studied as 12 states examine used-parts allegations

Article Abstract:

The Florida Office of the Attorney General issued subpoenas to Packard Bell requesting documents pertaining to the company's practice of using parts from returned computers in new machines. The investigation is part of a 12 state probe of Packard Bell that seeks to determine whether the company's practice violates consumer protection laws. The investigation, led by FL and IL, also includes AR, DE, MA, MI, MO, NY, PA, TX, and VT. The state investigation could result in massive penalties for the computer maker because it would be fined for each violation, which means each computer sold. The investigation parallels a federal investigation instigated by rival computer vendor Compaq. Packard Bell admits that it reuses some parts from used machines in machines sold as new, but only after the parts are certified as new. It also claims that the practice is common in the industry and that Compaq was using the issue to hurt Packard Bell because it cannot compete in the marketplace.

Cases, Microcomputers, Microcomputer industry, Equipment and supplies, Investigations, Industry legal issue, Litigation, Packard Bell NEC Inc., Lawsuit/Litigation, Florida. Office of the Attorney General

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Ingram Micro posts 40% rise in earnings; PC distributor solidifies top position, embarks on assembly strategy

Article Abstract:

Ingram Micro announced 1st qtr 1998 net income of $56.5 million, or 38 cents a diluted share, which represents a 40% increase over the 1st qtr 1997's $40.4 million, or 28 cents a share. A First Call-conducted poll of analysts had predicted a per-share average gain of 36 cents. The world's largest distributor of PCs and accessory products also reported revenue of $5.15 billion, up 41% from $3.65 billion. Ingram Micro has strengthened its industry lead as a high-tech middleman despite PC manufacturers's shrinking profit margins. A new company plan calls for developing a network of computer assembly plants that will finish partially completed PCs from companies like Compaq and IBM as customer orders arrive. This strategy would replace the longstanding operation of warehouses to supply computer products to retailers.

Ingram Micro Inc.

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Apple Computer again far exceeds analysts' expectations of earnings

Article Abstract:

Apple's of $55 million, or 38 cents, for the 2nd qtr ended Mar 27, 1998, easily surpassed analysts' profit expectations for the second consecutive quarter. By comparison, the computer company lost $700 million, or $5.64 a share, in the 2nd qtr 1997. Analysts had expected Apple to earn around 17 cents a share in the 2nd qtr 1998, First Call reported. The profit figures signal a continued cost control turnaround at Apple, which lost almost $2 billion from 1996-97. Sales of 650,000 units not only represents an 8% quarterly gain, it also demonstrates for the first time that Apple is slowing its long market-share decline. A new line of speedy Macintosh systems based on the powerful G3 microprocessor accounted for 51% of sales. Revenue of $1.4 billion shows a 13% decline from $1.6 billion in the 2nd qtr 1998.

AAPL, Apple Inc.

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