CPQ's Mason says 'worldwide PC demand strong' - from the Dow Jones Newswire:
Dow Jones Newswires -- December 5, 1997
Worldwide PC Demand Still Strong,
Compaq Executive Says>CPQ
By Jim Carlton
HOUSTON (Dow Jones)--Demand for personal computers worldwide
shows no sign of slackening from its robust pace, despite the economic
problems in Asia and some fears of softening in North America, Compaq
Computer Corp. (CPQ) Chief Financial Officer Earl Mason said.
Mason's positive comments on the current state of the industry were echoed
by executives of other big PC manufacturers, including Hewlett-Packard
Co. (HWP) and closely held Packard Bell NEC Inc. All three companies
report strong holiday sales in most parts of the world, with the exception of
the still-sluggish Japanese market and a slowdown caused by the problems
in Southeast Asia.
However, Compaq's Mason told Dow Jones that many of the major
manufacturers are so broadly diversified around the world that a falloff in
one market can be offset by high growth in another. Compaq, for example,
gains about 5% of its total revenue from Southeast Asia, but is not suffering
from the slower sales there because of offsetting high growth in Europe.
Analysts are predicting a rate of 15% to 17% growth in PC unit shipments in
Europe this year, or almost the same rate of growth as the industry
worldwide.
"The good news is that Europe has come on like gangbusters," Mason said.
"I have not seen Europe this strong in a year and a half."
At Packard Bell NEC, based in Sacramento, Calif., the company said sales
growth is especially strong in the United Kingdom, France and the
Scandinavian region, while Germany is still lagging. "I can tell you that
Europe is strong," Michel Fromont, Packard Bell's international vice
president, told Dow Jones. And for H-P, based in Palo Alto, Calif., an
executive said that sales are so strong worldwide that the company recorded
the busiest month ever in November for sales of its consumer-oriented
Pavilion computers.
"Europe has recovered very nicely from last year and growth is still strong in
the U.S.," said Jim McDonnell, worldwide marketing manager for H-P's PC
Group. "Overall, the season has been good."
Both H-P and Compaq, though, have been growing at rates of above 50%
annually by stealing market share from smaller rivals, including Packard Bell.
Analysts say the industry continues to consolidate in favor of the large
players. Still, Mason says he sees no falloff in overall PC demand around the
world.
John
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