Price-cutting and sagging economies in Europe break PC market bubble

Article Abstract:

The bloom is off the rose for the once-booming $22 billion European market for microcomputers. As recently as 1st qtr 1993, when sales leaped 21.8 percent, Europe was the hottest microcomputer market in the world. In 2nd qtr, however, the increase fell to 11.2 percent, or 2.2 million microcomputers sold. Because of a fierce price war, revenues may actually have fallen. Dataquest Inc researcher Christopher Fell says there is tremendous price elasticity in microcomputers. The slumping market has hurt US-based firms such as Apple, Commodore International Ltd and Dell Computer Corp as well as leading European vendors such as Ing. C. Olivetti and Co and Siemens AG. Compaq, IBM and HP, however, have seen their sales and market share grow. Dell plans a reorganization of its European operations to cut costs, while Olivetti plans to emphasize its higher-end machines.

Microcomputers, Supply and demand, Price cutting, Microcomputer, Market Analysis, Demand, Reduction

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Revamp at Olivetti has yet to add up; computer maker's chief says turnaround is at hand

Article Abstract:

Ing. C. Olivetti and Co's Managing director Vittorio Cassoni expects that profit will increase for the Italian computer maker in 1991 even though 1990 results were dismal. The company's stock has fallen to one-fifth its 1986 peak since Cassoni has taken charge and it expects to report a 40 percent drop in its 1990 results. The reorganization efforts of Cassoni have yet to make a positive difference; so far they have only created turmoil inside the company and caused many customer complaints about service and quality. Industry observers perceive Cassoni's hitherto failing efforts at restoring Olivetti to its former glory in the European computer industry as indicative of companies that lose their market edge in the computer industry.

Italy, Management, Officials and employees, Corporations, Business planning, Olivetti S.p.A., Corporations, Italian, Executive, Reorganization, Financial Stability, Cassoni, Vittorio

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IBM, other U.S. computer makers face challenge from the Japanese in Europe

Article Abstract:

American computer manufacturers, headed by IBM, have long dominated the European microcomputer market, but Japanese companies are making moves in the area that could threaten American dominance. The battle is more than one of pride for US makers. IBM, for instance, depended on European sales for 71 percent of its net income in 1989. Toshiba Corp has already grabbed the lead in the rapidly expanding European laptop computer market, while Fujitsu has become the second largest computer company in the world by acquiring International Computers Ltd (ICL) of Great Britain. The real losers in the battle will most likely be European firms, most of which will look for foreign partners, or face extinction.

Economic aspects, Japan, International trade, Foreign Competition

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