Zenith's return to roots may be plunge into problems; decision to abandon computers for HDTV project raises doubts

Article Abstract:

Zenith Electronics Corp will sell off its computer business to concentrate on consumer electronics and the high-definition television (HDTV) market. Compagnie des Machines Bull will purchase Zenith's computer business for $365 million. Zenith's financial future hinges on the US government's policy on development of HDTV. Japanese and European companies are ahead of US electronics corporations in the research of HDTV. Long-term research can be costly, with no return on investment for several years; US companies need a financial boost to catch up to the rest of the world. The government has not been forthcoming with help, however. Zenith CEO Jerry K. Pearlman would like to see a $5 tax on every new television set that would result in a $100 million trust fund for HDTV research in the US. Zenith will use some of the proceeds from the sale of the computer division to finance its HDTV research.

Household audio and video equipment, Management, Product development, Consumer electronics industry, Consumer electronics, Compagnie des Machines Bull, Divestiture, High-definition television, High definition television, Divestment, Zenith Electronics Corp., ZE, Strategic Planning, Company Profile

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Oy Nokia to sell computer unit to U.K.'s ICL; Fujitsu affiliate's purchase fuels European debate on foreign penetration

Article Abstract:

Oy Nokia, the Scandinavian computer manufacturer, agrees to sell its computer operations to Fujitsu Ltd's British affiliate, International Computers Ltd (ICL) for 230 million pounds sterling ($404.2 million). The agreement means that Fujitsu will be the fifth largest computer company in Europe and will constitute a challenge there to the market's leader, IBM. Fujitsu's move fuels a debate in Europe, where the computer industry is ideologically divided between free-marketers and protectionists. Some in Europe believe that companies there should make alliances with powerful Japanese and American competitors, but others say that European hardware companies, which have not been doing well, should band together, forming their own alliance against outsiders.

Electronic computers, Europe, Computer industry, International aspects, International competition (Economics), Free trade, Fujitsu Ltd., Free enterprise, Nokia Oy AB, Japanese Competition, International Computers Ltd. (Nairobi, Kenya), Nokia Data Systems Oy

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