Zeev,
The one thing I am still wondering about is how these announcements are connected to Asian problems. My naive model shows Asian countries as importers of equipment and exporters of chips, services and finished goods. I can see Asian demand for semi-equips slowing down but Jbil mostly serves U.S. markets (only one office in Malaysia).
Also, here is a paragraph from Arrow's announcement:
>>>>
Results for the first two months of the quarter reflect pervasive
weakness in the broad electronics markets. This highly
competitive environment is characterized by continuing pressure
on average selling prices and narrowing gross profit margins, as
suppliers' output of components remains high, lead times
shortened, and most products freely available around the world.
Although global in nature, these unfavorable market conditions
are most pronounced in North America, where revenues appear
to have flattened from the fourth quarter of 1997, reflecting
inventory adjustments in the channel, the impact of lower prices,
and a slowing of growth in certain computer products markets. As
a result, the first quarter's operating expenses will be
proportionately higher than anticipated and operating margins will
be under pressure.
>>>>
arrow.com
This reads like oversupply and slowing demand in the U.S. Will demand pick up later this year or do these indicate that PC demand may be flattening despite all the price cuts.
Thanks again,
Dave |
