U.S. economy rebounds; electronics never dipped

Article Abstract:

US economic data for 3rd qtr 1995 is mixed, with industry analysts indicating that a bottom has been reached after a slow 2nd qtr, with strong growth anticipated for the 4th quarter. The electronics industry is expected to see boom conditions through 1996. The industry's strongest areas are telecommunications equipment and PCs. Furthermore, a revenue boost may be coming from the proliferation of direct satellite broadcast systems services for television. Nevertheless, in Jul 1995 factory jobs decreased for the fourth consecutive month by 85,000, while unemployment rose from 0.1% to 5.7%. Soft PC sales are viewed as temporary, while PC production remains limited only by the components shortage. Meanwhile, escalating sales of Pentium-based systems, expected to reach nine million in the 4th qtr, is creating a SRAM shortage. Overall, the semiconductor industry recorded a book-to-bill ratio in Jul 1995 of 1.22. Export sales remain strong. US manufacturers took advantage of the cheap dollar and the worldwide increasing demand for PCs and communications equipment.

Telephone and telegraph apparatus, Computer networks, Statistics, Market Trend Market Analysis

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The conversion of Sony

Article Abstract:

Sony's shift from its traditional analog product strategy to digital technology was prompted by flat sales for the four years from 1992 to 1995. Its entry into the US PC market took place in Jun 1996 with the $2,300 166MHz Pentium-based PC by Sony, a machine manufactured by Intel. PC by Sony offers features that differentiate it from its competitors, including enhanced audio and video based on the company's own MPEG-1 algorithm. The monitor has built-in speakers and sub woofer that follow a unique placement design. Sony also has put in a large amount of software onto its PC's hard disk, more than its competitors. To improve its presence in the US PC market and compete with the industry giants, Sony has defined a four-point strategy that includes offering state-of-the-art technology and service, leveraging the Sony brand name, leveraging its strong retailer relationships and building on its strength in the PC component market.

Management, Microcomputers, Marketing, Cover Story, Sony Corp., Company marketing practices, Company analysis, Company Business Management, Pentium-based system, Pentium based computers, Sony PC (Pentium-based system)

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A mixed first half for the electronics industry

Article Abstract:

The huge growth in the electronics industry during 1995 was not expected to continue in 1996, but a wide range of results from various market segments took some by surprise. Particularly alarming is the sharp drop off in the semiconductor industry where DRAM prices have fallen to hurt a slew of companies including Advanced Micro Devices, Texas Instruments, Cirrus Logic and National Semiconductor. Prices for 4MB DRAM has fallen to $7 from its 3rd qtr 1995 level of $14; prices for 16MB fell from $50 to $24 during that period. These declining prices are affecting the book-to-bill, which has remained below 1.0 for all of 1996 so far; it was at 1.2 during Dec 1995. Some believe swollen inventories are to blame for the problems in the semiconductor industry. Prices are expected to stabilize; lower prices could start a political battle over dumping.

DRAM (Dynamic random access memory), DRAM

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