Climbing higher but not as fast

Article Abstract:

The electronics industry will continue to grow in 1996, albeit at a reduced rate. The decrease in growth rate will be linked to slight changes in economic conditions in certain world areas. However, many industry observers and economists believe that strong capital spending, low interest rates and low inflation will help maintain the present expansion of the electronics markets. In 1996, much of the industry's growth will be self-generated, and the industry will continue to need capital investments to support business. The US presidential election and campaigns will have little effect on the economy or market growth. Shortages in semiconductors and other components are anticipated, but may disappear by 1997 as production capacity increases worldwide. Most of the PC industry's growth will be outside North America, mainly in Western Europe, Japan and Asia as these regions attempt to catch up to US automation levels. The US gross domestic product is anticipated to grow at 2.7% in 1996, compared to 3.2% in 1995 and 4.1% in 1994.

Corporate growth, Industry growth

---

Overseas expansions keep the momentum going

Article Abstract:

US revenue growth in computer systems will slow to a more sedate pace in 1996, following a slowdown in sales for desktop PCs, while portable and desktop sales will stay strong in Asia and Europe as 32-bit systems become affordable. PC vendors will compete more aggressively as systems' prices drop, bundling systems with more memory, 3-D graphics, higher-speed CD-ROMs and other features. Adding such features to PCs will contribute to their widespread acceptance as standard products in 1996. Many US manufacturers will benefit from export opportunities for all types of computer equipment with an anticipated growth of 11% in 1996. Western Europe's growth is expected to increase at 22% in 1996. The Asia market, except for Japan, is expected to see a growth of 27%, and Japan's growth is anticipated to reach 20%. Notebook computers will be much in demand throughout the year with features rivaling those on desktops. Also, the network client/server segment will be a growing market, and workstation prices will decline to about $15,000.

---

Some recession worries are beginning to surface

Article Abstract:

There are signs of an economic slowdown, even a recession in 1996, despite the rapid growth in the electronics industry and the 4.2% 3rd qtr 1995 growth in the gross domestic product (GDP). Underlying the fear of an economic downturn is the fact that Dec 1995 is the 57th month of an economic expansion, seven months longer than the average since World War II. The more negative signs include forecasts of only a 2.5% 4th qtr GDP gain, retailers' anticipation of a mediocre Christmas season, and a Sep 1995 downturn in the government's index of leading indicators. Retail sales growth will be only 2.2%, down from 6.2% for the same quarter in 1994, and electronic sales will only grow 15.8%, while the 4th qtr 1994 growth was 32.1%. Factors driving the conservative sales growth include the House's battles with the White House, which are causing consumers to limit spending until they see the outcome. Economic growth in Japan and wage growth in the US are discussed.

Business economics, Managerial economics, Market Trend/Market Analysis

Similar abstracts:

• Abstracts: D&H expands incentives on HE/CE gear. Creating an experience. D&H becomes authorized Zune distributor
• Abstracts: Playing the waiting game. High fashion in high tech. Serial FireWire finally shows signs of gaining momentum
• Abstracts: Diversity in the midst of multimedia convergence. Small computers go after market niches. Why DSP cores are catching on
• Abstracts: Royal Air Force turning to COTS to support its Harriers. The state of the defense electronics industrial base, part 2

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.