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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: flickerful who wrote (4491)	2/24/1998 10:57:00 AM
From: Robert Utne	Read Replies (3) \| Respond to of 6570

Zenith's Plans for 1998 (excerpted from Communications Daily): 1. LG Electronics is expected to start production of Zenith Divx player this week in Korea with plans to ship to two Divx introductory U.S. markets in April. 2. Zenith reduces line to 25 models for 1998 from 57 introduced 3 years ago and is largely at expense of smaller 13-20" screen sizes ($199-$379). In volatile 19-20" category, Zenith limited itself to 3 models, but even projection TV wasn't spared.It dropped 46" and 52 " to focus on 6 -- 50", 56" and 60" sets ($1,999-$3,399) with new chassis and data port for connection to future Internet products. Overall data port was in 11 direct-view and projection sets. Also gone are electronic programs guides, which may return in 1999, it said. Zenith had launched StarSight on-screen guide as built-in TV feature. "Five screen sizes was too much and our strategy is to be important in what we view as key screen sizes," Zenith Sales Pres. William Sims said. "The below 50" category is very promotional and we want to be more of a step to brand." Zenith has held 27-36"offerings ($399-$1,999) at 11 models, but followed industry trend in eliminating 35". Line also has four 25" sets at $329-$449. 3. Key to projection and step-up Inteq lines is new chassis that increases power to 53.5 w from 39 w to boost resolution to 1,000 lines from 800. Inteq 56-60 "projection sets feature 3D Y/C comb filter and scan velocity modulation as part of effort to continue growth of brand's dealer base that numbered 500-600 in 1997, up from 150 in spring, Sims said. Sets also have 2-tuner PIP and PIP snapshot feature allowing user to freeze image on screen. 4. On audio side, Zenith extended Barcus-Berry Enterprises (BBE) audio enhancement circuit to 9 models from 4 and boosted power in select sets to 20 w from 10 w. 5."They've recognized the need to better operate and control their product line," major midwest retailer said. "But they're coming to a crossroads and have to decide what brand image do they want to have." 6.Inteq brand is likely to play major role in Zenith's planned late summer rollout of 64W" projection DTV with expected $10,000 price. Final process to ready production is expected to begin in late spring, although Zenith still must get 9" tube source. Assembly plans haven't been finalized, although Zenith factory in Juarez is strong candidate, spokesman said. Zenith also is expected to deliver standalone set-top HD receiver/decoder in April at $6,000, downconvertor box in 1999. 7. On DTV promotion front, Sims said Zenith received strong response from consumers to "Ultimate Cutting Edge Pledge" that offered to apply cost of 32-60" Zenith NTSC set bought Aug. 1-Dec. 31 toward purchase of digital model. Number of consumers who responded wasn't available. Zenith won't renew program this year, will focus on new "educational" in-store display materials available in spring. 8. Zenith sourced DVD chassis from Toshiba last year, but hasn't finalized plans for this year when it has other production options, including LG, Sims said. Current DVD player will remain in lineat $649 list. "There are no political issues, it's just a case of trying to find a deal that the most sense for us, " he said. "The normal price erosion is going to take place and we're very focused on all sourced products to make sure we can be in the business safely."Decision on DVD strategy is expected by spring, Sims said, and Zenith wants "to offer both DVD and Divx to our customers and let them decide." 9. Internet strategy is on hold, Sims said. Zenith has no plans for NCI box shown in LG Electronics booth at Comdex. "That entire segment of the business is evolving and changing all the time and we believe that it is a category that will be our strategy long term," Sims said. "We haven't finalized a strategy-to-business plan and exactly what we're going to do hasn't been determined." 10. In core VCRs, Zenith has dropped most of 7-model line of VCR plus one-touch recording feature, retaining it for stepup 4-head hi-fi unit ($249) that contains SpeakEZ technology. SpeakEZ is nonvolatile chip-based feature containing voice that leads consumer through VCR recording and setup procedures. Voice portion runs 3 min., restarts if unused for 25-30 sec., Zenith Product Mgr. Trish Graham said. Overall line contains single 2-head model ($169), two 4-head mono ($189-$199) and four 4-head hi-fi ($209-$249). 11. Zenith again is quitting camcorder business after carrying 2 JVC-sourced VHS-C models in 1997, one with 3" LCD. Decision was based on "dramatic " price erosion in 1997, Sims said. Home theater audio line that included Dolby Pro Logic receiver, speakers and others products in 1997 is likely to be expanded this year. Wireless speakers may be added and power output increased, Sims said. 12.Zenith remained on sidelines in DBS business, although it's continuing negotiations with service providers. While it has had discussions with EchoStar, among others, in past "we haven't found a deal that is right for us," Sims said. 13. In slight departure from video focus, Zenith also displayed PC-based videoconferencing product expected to be available by 2nd quarter at $399. Camera containing 1/4" color CCD is packaged with software titles including White Pine's CU-SeeMe and Microsoft's NetMeeting.