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

To: Duker who wrote (32738)	10/5/1999 2:49:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

PC Prices Rise in Taiwan Due to Low Component Supply October 5, 1999 (TAIPEI) -- Soaring DRAM microchip prices are resulting in higher prices for Taiwan's personal computer brands. Leo Systems Inc., for instance, recently raised the prices of its two low-end desktop PCs by NT$2,000 and NT$3,000, respectively. And Acer Peripherals Inc. raised the prices of various desktops by an average of NT$2,000 each. (NT$31.79 = US$1) Twinhead International Corp. said it has decided to raise PC prices, but has not yet unveiled details. Industry observers said this earthquake-triggered price increase could spread to global markets, which would serve to moderate the prevailing low-price trend. The earthquake that hit Taiwan last month added fuel to the increase in DRAM prices. This, in turn, is putting pressure on PC makers' operating costs, forcing them to take follow-up action. Leo Systems raised the prices of two types of PCs with PIII 450MHz microprocessors by NT$2,000 and NT$3,000, respectively. This set of moves puts the price of a PC with a 14-in. screen at NT$34,900, and that of a PC with a 17-in. screen at NT$39,900, a Leo official said. Acer Peripherals boosted the prices of most of its models by about NT$2,000. However, the company left unchanged the price of its notebook with a PII 400 MHz microprocessor and 14.1-in. TFT-LCD panel, which sells for NT$69,900. The earthquake has taken its toll on delivery of components. This in turn is dealing a blow to PC shipments, and manufacturers are concerned that a low supply could accelerate price increases throughout the world. Rumors are circulating in the market that Japanese and Chinese producers are on the verge of increasing prices. PC prices had been falling since 1997, with desktop PCs falling at an annual pace of 9.5 percent, and notebooks at 12.4 percent, according to IDC statistics. However, the short supply of components could put an end to this trend, industry observers say. Related stories: PC Makers Suffer Parts Shortages, May Last for Months Taiwan Quake Influences Global PC Market (Commercial Times, Taiwan)