Interesting stories,
1) outlooks of chip industry bright in 1998, 1999, 2000.
2) CPQ and DELL were downgraded .
What products are going to use the chips most ? Of course computer related products,
i.e PCs, networkings, Modems, CPUs, Memories, I/O , VGA, Panel controllers, audio chips
Power Management IC , DSP ....etc. If the chip industry looks bright in 1998, 99,2000
, this also means we will have a big and very big expansion in the PC market, so that we
have more applications related to the PCs, and need more of those hardwares for pc
related applications, i.e video conference, communication, ...etc, that is why the chip
industry looks brighter in 98, 99, 2000.
But, something strange enough is that the outlook of semiconductor industry is bright
, in 98, 99, 2000, while the pc business, where PCs and its related products used most
of the chips ,was downgraded. What kind of analysts are those? Did they really know
anything about the industry or the market in general ????
In the South East, as long as the Chinese, and Japanese markets are in good shape, things will be as usual.
The S.E. Asian countries counted very little of those high tech. business from the US,
while with depreciation of local currency, the labor cost will be much lower for US
products (shoes, bags, ...etc) manufactured locally and shiped to somewhere else which is the market for much higher profit. That is the rule of the ball game, and will also reduce
the inflation in the US. Now, FED has room to drop the interest rate in the months to come.
Increase productivity is the way to reduce inflation, i.e high salary with high productivity.
To reduce inflation by increase rate and reduce consumption is just rediculous. To increase
productivity, computers are the must !!!!!!!!! |
