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Technology Stocks : Apple Inc.
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To: Doren who wrote (25219)6/23/1999 2:03:00 AM
From: Richard Habib  Read Replies (1) of 213173
 
It's worth looking again at this article originally posted 5/24 regarding Alpha Top and the P1. Among important points the rumor stated Alpha Top producing in June with a 30% increase this year in shipments (30% relative to what). Also, Apple spokesperson response
"Apple's representatives in Taiwan said only that their company "will surprise the market" in the second half of the year with a new product line." The P1 rumors appear fairly substantial but would Apple really enter a production agreement without a working prototype. This isn't my business but it seems pretty iffy.

To: rhet0ric (24941 )
From: Richard Habib Tuesday, May 25 1999 1:00AM ET
Reply # of 25219

Here is some interesting news

Apple Places OEM Orders with Taiwan PC Makers
May 24, 1999 (TAIPEI) -- Apple Computer Inc. is outsourcing production of its iMac computers to Taiwan PC makers.

In addition to PC systems, the company also plans to procure electronic components, including power supplies and computer cases, from Taiwan. Quanta Computer Inc. began to ship high-end notebook PCs to Apple in March, while Alpha Top Corp. is scheduled to churn out iMac lines of notebook PCs in June.

Apple's iMac desktop computer has been a hit in the market ever since its debut last August, accounting for 20-30 percent of the company's total output in 1998, and helping to push Apple's share of the U.S. desktop market up to 4.5 percent.

Steve Jobs, Apple's interim chief executive, said he will increase the output of iMacs to account for 50 percent of the company's total within three years in order to maximize profits. Yet, since Apple's production lines are already operating at full tilt, the company decided to outsource the output to Korean and Taiwan companies. Apple Computer has set up an international procurement office in Taiwan and increased its staff in Taiwan one-fold.

Korea's LG Electronics Inc. is now producing the monitors of iMac desktops, while Taiwan's Alpha Top won the contract for iMac notebooks. Market sources claim that the ultra-slim notebook will follow the chic, multi-color design of the desktop model, and the price will be set at less than US$1,500. However, neither Alpha Top nor Apple was willing to confirm the rumor. Apple's representatives in Taiwan said only that their company "will surprise the market" in the second half of the year with a new product line.

As a consequence, Alpha Top is expecting growth of at least 30 percent in shipments this year, and orders may increase if the product becomes a hit later this year. In light of this possibility, Alpha Top plans to add more production lines in order to be ready for any increase in Apple's OEM orders.

(Commercial Times, Taiwan)

nikkeibp.asiabiztech.com.


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