Taiwan's Computer Retail Prices in Chaos Amid Free PC Trend
December 16, 1999 (TAIPEI) -- The trend to give away free personal computers has hit Taiwan, benefitting securities companies and Internet service providers in the past six months.
This, however, has sent computer retail prices into chaos and limited business opportunities for computer retailers.
Since October, major computer companies in Taiwan such as Acer Sertec Inc., Twinhead International Corp. and Leo Systems Inc. have all witnessed a shrinkage of their retail business compared to the same period last year.
According to preliminary estimates, these companies' operating revenues from retailing in November dropped by at least 20 percent annually on average.
In order to boost overall sales, computer companies are reviewing the concept of free PCs. Their cooperation with ISPs and securities companies is likely to move into a new era next year, when computer companies may work with financial institutions to offer packages, including hardware and various services.
Acer Sertec's retail sales slumped 30-40 percent in November. Leo and Twinhead also suffered at least 20 percent declines in the same month.
Computer makers here point out that in addition to the fact that November is normally a slack season for computer sales, the trend for free PCs also helped dilute business opportunities for computer companies.
Fortunately, education and government agencies have made significant procurements this year to complement the losses. In November, Leo enjoyed a handsome 50 percent growth in such deliveries, while Acer Sertec and Twinhead both reported more than 10 percent growth.
(Commercial Times, Taiwan)
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