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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (9561)	11/25/1997 11:21:00 AM
From: hpeace	Respond to of 97611

i posted that last month by country in asia.. like the day after crash need tofind in on cpq thread. cpq's % is 10% in asia, they do business in dollars except japan where they hedge. this is going to drop their purchase cost and with europe not effect their sales at all. profits just will go up. look last month for the details.

To: Mohan Marette who wrote (9561)	11/25/1997 12:53:00 PM
From: ed	Read Replies (2) \| Respond to of 97611

I can answer you question on price of components: Most of the components for PCs are manufactured in Asia, i.e process of wafers (Samsung, LG, TSMC, UMC, Winbond, Vingard, TI-ACER, MOSEL VITELIC, Macronix,power chips, Charter) , chip assembly & testing (Anan, Siliconware, ASE , Alpha .. etc) , except CPUs processed in US . Due to heavy competition on foundry and assembly/test business and currency devaluation, the component price has dropped a lot and will continue in the quarters to come. Example: due to recent drop in WON, samsung droped its price of DRAM in US dollars a lot and the Taiwanese manufacturers followed.The 16MB DRAM is cow priced at $2.5 to 3 and heading toward $1.5. Lot of motherboards are also assemblied in Taiwan !!!!! Just calculate the currency depreciation on each of those asian countries, the result will be how much the price of components will drop in dollars. This is the reason I said in my previous post as long as the DRAM price keep dropping, CPQ can compete with Samsung in PC business. Since Samsung is a major DRAM manufacturer.