A shakeout looms for Taiwan's computer companies; price wars and rising labor costs mark the end of a boisterous decade
Article Abstract:
Strong price competition and higher labor costs are troubling Taiwan's microcomputer manufacturing industry after a decade of constant growth. A major fall in the prices of microcomputers worldwide has generated predictions that more than 20 percent of the 4,500 computer firms in Taiwan may close during 1993. Many manufacturers are are attempting to shift assembly of higher-volume products overseas and concentrate on more profitable niche markets such as CD-ROM, multimedia and palmtop computers. Acer Inc, Taiwan's largest microcomputer manufacturer, is exploring computer assembly franchises as a way of decreasing overheads that in 1991 resulted in the company's first loss since its foundation. The government is attempting to promote diversification into computer-associated industries such as software and semiconductors. Unofficial trade with mainland China promises both a cheap source of labor and a huge market.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1992
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Acquisition by Digital reinforces role of PC
Article Abstract:
Digital Equipment Corp (DEC) acquires 800 Software Inc (Berkeley, CA), which resells software for microcomputers. Financial terms remain undisclosed. 800 Software, which reported revenues of $77 million in 1991, will become a DEC subsidiary, retaining its management. This acquisition is seen as more evidence that DEC is serious about its growing commitment to the direct-mail microcomputer market. In separate news, John T. Rose, VP of DEC's personal computing group, has announced that he plans to resign and form a venture of his own. Rose is only the latest of several executives who have left DEC during the past year. Rose says he is leaving DEC on good terms, but analysts say there were policy differences between Rose and DEC's president, Kenneth H. Olsen.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
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