Low- and falling

Article Abstract:

The price of a PC with monitor will fall to the $600 level by the end of 1999, according to analysts. The trend toward inexpensive PCs has encouraged manufacturers to come up with $800 versions in 1998, which would have cost $2,000 in 1996. Consumers are reaping the benefits and are, in turn, boosting PC sales. In Feb 1998, more than 50% of retail computers in the US cost less than $1,000, compared to just 8% in 1997. More than 40% of the buyers were acquiring their first PCs. To bring costs in line with lower profit margins, however, the PC industry is going through a restructuring; traditional big players, such as IBM, Apple and Packard Bell NEC, are being squeezed by such aggressive sub-$1,000 PC makers as Compaq. Intel, likewise, has reported lower earnings because of price cuts, while competitors AMD and Cyrix are gaining because of their less expensive processors.

Electronic Computer Manufacturing, Analog & Hybrid Computers, Microcomputer industry

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Foreign markets give PC makers a hearty hello

Article Abstract:

Surging sales are convincing PC manufacturers to enter the global home-PC market. Analysts predict that European and Asian markets will support twice the PC sales volume than the US market. In fact, combined PC sales in foreign markets will surpass sales in the US for the first time this year. Decreasing prices and increasing availability of foreign-language software are supporting the global sales boom. Compaq, Acer Group, IBM, Apple and HP are all competing for global market share. Specifically, the global market is predicted to support 25 million in annual PC shipments with a value of $48 billion by the year 2000, whereas the US market is expected to post annual sales of 16 million PCs valued at $27 billion. Other analysts are more conservative with their figures but do not deny that the global market will become increasingly important to PC manufacturers.

Europe, Industry trend, Asia, International markets, World Market, Home Computer Market

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Power Computing gains towering presence as cloner; CEO 'King Kahng' snatches some of Apple's revenue as it copies the Mac

Article Abstract:

Power Computing is using its ability to maneuver quickly in anticipation of market trends and its low-cost development cycle to offer fully configured clones of Apple's Macintosh computer for approximately one-quarter the price. Since shipping its first clone in May 1995, Power has sold 100,000 units, increased annual revenue to $250 million and enhanced its workforce to 300. Power has consistently exploited Apple's continuing management and product development weaknesses since licensing Apple's operating system in DEC 1994, hiring Apple employees and beating Apple to market with products. Power introduced PowerPC-based systems with 120MHz, 166MHz and 180MHz processors even before Apple, and Power has been more willing to meet particular consumer demands in order to obtain large contracts.

Marketing, Company analysis, Power Computing Corp.

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