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To: hpeace who wrote (9725)	11/26/1997 10:01:00 PM
From: Kai-Uwe	Respond to of 97611

Steve: Basically the world is split in-two: - most of Asia/Eastern Europe: * here you don't have any concern but pricing * the cheaper, the more you sell * quality is not much of a concern * day-old technology (as long as it does the job) is fine * more frequent replacement buying => any sub-zero PC will sell like hotcakes - more developed societies: * larger price segmentation * quality-conscious market * replacement buying only to upgrade, but then really do the business => sub-zero will sell, but not as strongly accross the board Of course you have to factor in national considerations in countries like Japan and Korea, don't forget. Other factors play into course, as well. But overall, there is huge potential in the region (1.2 billion Chinese, 1.1 billion Indians, 250 million Indonesians, etc.). While I agree that not all are able to buy a PC now, there is still enough market demand to be met (remember the China market growth prediction by CPQ to be 60% annually just today!!!). For example: There is a huge market in Singapore alone (3 million people), since the government is promoting a program that will eventually allow cable access (broad bandwidth) to every home. Singapore also wants to attain a PC-to-student ratio in its schools that is in the single digits. This region will grow exponentially, despite currency crisis, market weakness, etc. The question is just what sector it will grow in. The only barrier here is pricing, coz the high-tech mfg'ing is all in this region. And, you can't produce high-tech on a low-tech infra-structure, in my eyes. What does that mean? Well, even though you can still run 486s, if you put up a new factory, for example, it makes little sense to buy old PCs (that is if you can get them in the first place). And factories are still going up left right and centre over here! Eastern Europe is pretty much the same, in my eyes. That's at least what my folks in Germany are telling me. I'll post another article shortly about Europe, though! Let me know if you need more specifics Kai

To: hpeace who wrote (9725)	11/26/1997 10:08:00 PM
From: Kai-Uwe	Read Replies (1) \| Respond to of 97611

Regarding Europe: Being German myself I fully agree with the article I posted below - I cannot find words to describe how low-tech the average German household is. Just for your info: most folks are still on rotary dial mechanism, seriously! My folks have switched to ISDN for ease of use with fax and internet (my little sisters love to surf the net and send me emails). But, they are using P54-75 (don't tell them that I'm going to buy them a brand-new 'high-tech' <g> PC for XMas) - and were using 486 until about a year ago (they generally get an older one no longer needed from my dad's office)! However, I assure you that the majority of Germany is just in the process of switching from rotary dial to tone dial at the moment. ISDN is miles away, and nowhere in the world are phone charges higher. Example: I call Germany from Singapore S$ 1.8/min => US$1.1/min Germany calls me => DM3.5/min => US$2/min Also, local calls are exorbitantly expensive! K. Interesting article below: MIT Guru Scolds Europe (11/25/97; 2:45 p.m. EST) By Matthew Slater, for TechWeb BRUSSELS, Belgium -- France and Germany are "like the Third World" in terms of computer literacy, according to technology guru Nicholas Negroponte. Negroponte, founder and director of the Massachusetts Institute of Technology's Media Lab, used his keynote speech at the European IT Conference '97 here Tuesday to launch a blunt attack on what he said was the negative approach to the Internet by some European countries. The MIT Media Lab is a multimillion-dollar research center focused on the study of future forms of communication. It is supported by U.S. federal contracts and more than 75 corporations. "I am full of admiration for the situation in the Scandinavian countries," Negroponte said. Finland has the highest use of PCs per capita in the world, and Sweden has the highest tele-density, he said. "But it is almost as though someone has drawn a line under those countries," Negroponte said, "because you look at France and Germany -- and to a lesser degree the U.K. -- and it is like the Third World." Europe is letting its children down, said Negroponte, comparing the low figures for Internet use in European schools to the high percentage in American schools. Negroponte called for government-subsidized programs to help young people become more comfortable with technology and the Internet. "Access to the Internet should be a right, like breathing clean air. I don't care if you have to pay through the nose for it," Negroponte said. "I look at the model of Europe with an element of sadness, and when I hear that Deutsche Telekom has raised the cost of its local calls, I think that is a sin," Negroponte said. Copyright (c) CMP Media, 1997.