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Technology Stocks : S3 (Multimedia semi's place 2be)
SIII 0.00010000.0%May 12 5:00 PM EST

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To: Dave O. who wrote (9449)8/20/1997 3:03:00 PM
From: Leo Francis   of 9477
 
PC Makers Increase OEM Orders in Taiwan

TAIPEI -- Intel Corp.'s cut in Pentium prices, effective August 1, triggered a wave of
buying interest in personal computers, encouraging global giants like Compaq
Computer Corp., IBM Corp., Dell Computer Corp. and Packard Bell NEC Inc. to
place supplementary OEM orders in August.

Market observers expect supplementary lots by these firms will increase by 50 percent
in September in an effort to compete for market share in the fourth quarter.

Major OEM manufacturers like First International Computer Corp., Acer Inc., Mitac
Corp., and Elitegroup Computer Systems Co., Ltd. said they currently are operating at
full production capacities.

Impacted by the Intel move, a wait-and-see climate dominated the PC market for most
of the first half of 1997, with a considerable amount of OEM orders held back. PC
firms generally under performed their annual projections.

Intel and Compaq are two technology firms most active in placing logistic and OEM
orders.

Compaq, for instance, has placed supplementary OEM orders with Mitac and first
International Computer to meet high season demand expected in the fourth quarter.
Delivery is set at 80,000 sets in August and another 100,000 sets in September.

Shipments to IBM in August were estimated to be up 100 percent from July, and
another 100 percent rise is expected in September.

A number of local OEM manufacturers were forced to subcontract production to
satellite companies due to inadequate capacity.

Commercial Times, Taiwan - 08/19/97
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