Red-hot industry cools in the first quarter

Article Abstract:

Industry analysis reveals that the outlook for the electronics industry for 1st qtr 1996 will be cool, directly impacted by the fact that the overall US economy is expected to achieve Gross Domestic Product (GDP) gains of a mere 1%. Business in the electronics arena has been impacted by a drop in DRAM prices, coupled with a slowdown in the expansion of US PC shipments. In addition, domestic cellular telephone sales have also slowed. Industry observers predict that the PC market will become more competitive, and many believe there will be price wars and price cutting throughout 1996. Specifically, DEC is leaving the PC home market, while Apple is leaving the low end of the market, and AST Research reports a 25% drop in sales in 1995. One positive growth area was that nearly all US computer firms saw their sales in Japan expand 50%, although none was able to expand their market share.

Other Electrical Equipment and Component Manufacturing, Electronics, Electronic parts and equipment, Computer industry, Corporate growth, Industry growth

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Europe hopes for a better second half

Article Abstract:

Slow economic growth in Europe is affecting the electronics industry, particularly in PC and cellular phone sales. Countries that are contributing to lower-than-expected growth include Germany and France; Britain and Italy are barely meeting expectations. Lower tax rates and tax cuts in the second half of 1996 are expected to improve economic conditions in Germany, where unemployment has risen to 11.1% of the workforce and capital spending for manufacturing equipment has fallen from 2% to 3%. A strong year in 1995 for the European electronics industry is setting up a disappointing 1996. Western European communications and information technology rose 8.3% in 1995 to $380 billion, which is the strongest year in five years.

Economic aspects, Market trend/market analysis, Western Europe, International markets, World Market

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