Price war traps smaller PC makers
Article Abstract:
Mid-sized vendors such as Zeos International and Advanced Logic Research are being squeezed out of the $60 billion microcomputer market by such large competitors as Compaq Computer, Dell Computer and IBM, despite their best cost-cutting and product-development efforts. With the microcomputer price wars continuing unabated, and even opening up new fronts in the realm of customer service, midrange vendors are finding there is nothing left to cut to maintain their profitability. Zeos, for example, saw its 1992 revenues decline every quarter compared to 1991 figures, resulting in a $28 million loss for the year. Yet during this period it introduced three well-reviewed machines, cut costs and inventories, and obtained new financing. Unfortunately, customers are increasingly turning to the largest suppliers, who now offer such benefits as overnight repair service, free telephone support and multi-year warranties, benefits medium-sized vendors simply cannot afford.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1993
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Dell raises the ante for Kidder in battle
Article Abstract:
The Securities and Exchange Commission will investigate trading patterns in the shares of Dell Computer Corp after an analyst at Kidder, Peabody and Company Inc questioned Dell's accounting of foreign currency trading. The analyst said Dell's improper accounting had inflated profits, and the statement prompted selling of Dell shares. Prices fell $3.625 to $31 before closing at $33.375, still down by $1.25, even though Dell reported high sales and profits just two weeks earlier. The day of its report, prices rose to the record level of $39.25. Kidder recently settled a $165 million lawsuit due to insider trading by one of the company's investment bankers. Dell claims that it will not restate any previous financial results, that it properly disclosed currency hedging activities that were similar to activities by other major computer firms and that the Price Waterhouse accounting firm approves of its trading practices.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1992
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