Pricing squeeze threatens PC firms in Korea, Taiwan; U.S. discounting and fast market changes help to promote a shakeout
Article Abstract:
Price cuts and market changes cause a shakeout among microcomputer manufacturers in Korea and Taiwan. Five years ago, companies in those countries were doing well, but circumstances now are changed. Hyundai Electronics Co is laying off workers. There were 130 manufacturers of notebook computers in Taiwan in 1991, and now there are only 50. Conditions in Korea and Taiwan could become even harsher if the worldwide recession continues. In their relations with markets here, Asian companies have encountered problems involving both pricing and distance. Asian companies have not only had to match American companies' price cuts, but have had to cut prices even further because their brand names are not known in this country. Asian producers also suffer because their production sites are located so far from fast-changing markets here. Nor have Korean and Taiwan producers done well in Japan, where IBM and Apple Computer Inc are now selling in a market that is dominated by NEC Corp.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Software group accuses firms in South Korea
Article Abstract:
The Business Software Alliance (BSA), representing the US computer software industry, announces at a news conference that five of the group's members have filed complaints alleging that companies in South Korea are engaging in software piracy. The BSA, which estimates that US software publishers lost $10- to $12 billion in 1990 because of software piracy, wants the US government to take action by making piracy an international trade issue. Specifically, two Korean companies - Dae Lim Motorcycle Marketing & Sales Co, and Tae Young Industrial Co - are named in the complaint, which was brought against them by Ashton-Tate Co, Lotus Development Corp, Microsoft Inc, Aldus Inc and Autodesk Inc. The Korean government has raided the manufacturers' offices, and though no arrests have been made, a spokesman for BSA says he is confident that evidence will support the BSA's accusations.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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South Korean chip firms play catch-up; but doubts arise if they can go beyond basic microprocessors
Article Abstract:
Samsung Electronics Co now ranks among the world's foremost semiconductor companies, and other South Korean companies - Hyundai Electronics Industries Co, and Goldstar Electron Co - seem not far behind. Industry observers are impressed that Korean companies have caught up in the area of 16-bit memory devices. Nevertheless, the future for Korean companies is strewn with problematical obstacles: product life cycles of memories are short and prices tend to fall rapidly, and necessary costs of investment are increasing. Korean companies also need to move into areas involving more-sophisticated products with higher profit margins, such as semiconductors for consumer products or reduced instruction set computing (RISC) microprocessors. Industry executives of Korean companies say they need to make strategic alliances, as Japanese, US and European companies are doing.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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