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

To: Jimbo Cobb who wrote (15280)	1/27/1998 8:42:00 PM
From: leebo	Respond to of 97611

Here's some good news.... [ Business \| US Market \| Industry \| IPO \| S&P \| International \| PRNews \| BizWire \| Finance Home ] Tuesday January 27, 7:07 pm Eastern Time COMPAQ sees high technology soaring in Europe By Neil Winton, Science and Technology Correspondent LONDON, Jan 27 (Reuters) - Personal computer sales in western Europe will storm ahead again in 1998, jumping 15 percent over the previous year to about 21 million, COMPAQ Computer Corp (CPQ - news) said on Tuesday. Andreas Barth, COMPAQ's general manager for Europe, told the company's annual press conference that European information technology markets in general and personal computer markets in particular will be in rude health in 1998. Spurs to sales will be the need for companies to ready their computer systems for the Euro currency on January 1, 1999, and new systems being bought because of fear of the millennium bug. Many European nations, led by Germany and France, will launch the single currency next year. This means any company seeking to do business with Euro currency members, whatever its domicile, will need computers able to handle transactions in Euros. Owners of computer systems dating from the 1970s and 1980s fear infection by the millennium bug. Often these computers will be unable to handle the transition from 1999 to 2000 and will crash or spew out erroneous data. Owners of old systems are likely to be scurrying for replacements between now and 2000. ''Consumer spending is improving in Europe, and major economies are picking up speed with private consumption forecast to grow by 2.5 percent in 1998, and inflation stable around the two percent mark. Only the high unemployment rate is a worry,'' Barth said. ''IT spending is increasing across the board with spending by the finance sector expected to grow 12 percent, telecommunications 10 percent, education eight percent, and manufacturing 10 percent. Small to medium sized companies are growing the fastest,'' Barth said. ''Information technology spending as a whole should rise 10 percent to $230 billion in western Europe,'' Barth said. Last year was also impressive for Europe and COMPAQ. Last week market researcher CONTEXT said western European personal computer sales rose 14.5 percent in 1997 to 19.4 million. In 1996 sales rose a relatively limp 11.5 percent after 1995's 25 percent spurt. According to CONTEXT, COMPAQ, the world's leading personal computer maker, extended its lead as number one in Europe with a market share of 15.1 percent, up from 12.4 percent. ''I don't want to say there are no challenges, this is a time of consolidation. There is a lot of fighting for position and market share, and that is bringing prices down,'' Barth told Reuters later in an interview ''Again the Asia crisis is impacting our customers. It's not all just milk and honey. There are some challenges in the market place. But COMPAQ is extremely well positioned. We've been growing three times the market in the past year, and we intend to continue to do that,'' Barth said. Last summer COMPAQ bought Tandem Computer. Yesterday COMPAQ announced an agreed takeover of Digital Equipment Corp (DEC - news) for about $8.5 billion in cash and stock. ''With the capabilities that we have with Tandem fully running and operational, and when we can use the synergies with Digital, it's going to be even better.'' Barth also sees the dawning of electronic commerce as a great spur to the information technology business. Advocates see huge amounts of business being generated by consumers sitting at home and ordering holidays, doing their banking and reading computer-generated newspapers. '''E' commerce will enhance our strong programme for this market place. Our new products are aiming at this,'' Barth said. More Quotes and News: Compaq Computer Corp (NYSE:CPQ - news) Digital Equipment Corp (NYSE:DEC - news) Related News Categories: US Market News, computer hardware, computers, international Help Copyright c 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon See our Important Disclaimers and Legal Information. Questions or Comments?