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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Tony Viola who wrote (32289)	8/25/1999 12:36:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Tony, There are a number of indicators pointing to strong PC demand, but I cannot say definitively. BestBuy reported blowout #'s last Q, Japan sold a record number of PC's, and Win 2000 will require something like 128MB to run effectively. FWIW, I recently purchased a new computer. But then again, I am usually a contrary indicator:-) Brian

To: Tony Viola who wrote (32289)	8/25/1999 7:02:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Flat-panel display shortage filters into channel By Marilyn Cohodas Electronic Buyers' News (08/25/99, 04:43:52 PM EDT) Buyers of thin-film-transistor (TFT) flat-panel displays through the channel can expect five months of steep price hikes to slowly taper off, but availability will continue to be a problem for at least another year, distributors say. Not surprisingly, the supply crunch currently being felt by notebook-computer OEMs- which largely source their panels direct from the manufacturer-is trickling down through the channel. While many distributors say their longstanding relationships with panel suppliers are allowing them to meet the demands of their strategic customers, newcomers to the channel are facing long lead times. Avnet Inc.'s Applied Computing Group, Phoenix, is quoting lead times of 16 to 20 weeks for FPDs designed into new products for first-time customers, said Troy Blanchette, vice president of marketing at Avnet. "Products are available but with a delay," Blanchette said, adding that TFT displays are not products that can be easily substituted. "It's not a commodity market. There are software and cabling issues to deal with. It's still a technology-solution sale." Prices "will still increase, but the increases won't be as great," said Carl Steudle, FPD marketing manager for Samsung Semiconductor Inc. in San Jose. Steudle predicts that FPDs will continue to be a scarce commodity for at least another year. The most difficult products to source are 10.4-, 12.1-, and 15-in. TFT flat-panel displays, according to Paul Plante, president and chief operating officer at Reptron Electronics Inc. "We've experienced a severe product shortage in a number of sizes in FPDs. Many of those are on hard allocation," said Plante, adding that the Tampa, Fla.-based company has been working with strategic customers to help them forecast their production needs, and relay those forecasts back to suppliers. Although the crunch has lasted longer than expected, Plante said Reptron has been able to receive proper share of mind from its vendors because of the distributor's past performance and long-standing relationships. For customers, the shortage has been a wake-up call in a buyers' market in which falling prices are more the exception than the rule, according to distributors. "Because we've been in oversupply for most other electronic products for several years, it's taken some time for customers to understand that this shortage is real," Plante said. Both distributors and suppliers blame the shortage on notebook-computer makers that are "gobbling up the lion's share of the demand," said Ben Schwartz, vice president of strategic marketing for Jaco Electronics Inc., Hauppauge, N.Y. "August is a critical month," Schwartz said, anticipating the impact of the Christmas rush on notebook-computer sales. "If the surge continues in demand, there could be additional pressures on manufacturers." Suppliers such as Samsung say they can meet the current needs of customers buying through the channel thanks to a combination of forecasting, planning, and a willingness on the part of distributors to carry a backlog of inventory. The future, however, is up for grabs. "We're taking great pains to minimize shortages in [the] general market through distribution," Samsung's Steudle said. "But distributors will probably see more of a shortage in Q4." ebnews.com