Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AMD:News, Press Releases and Information Only! -- Ignore unavailable to you. Want to Upgrade?

To: Francis Chow who wrote (5615)	4/18/1998 11:27:00 PM
From: Francis Chow	Read Replies (1) \| Respond to of 6843

April 20, 1998, TechWeb News Lower Prices Slam Top Vendors By Roger C. Lanctot New York - Average prices fell at double-digit rates in most computer hardware categories last year, but manufacturers were able to produce unit and revenue gains in all major categories. Desktop-computer manufacturers faced the most difficult test. Average prices in 1997 fell 15.6 percent compared to 1996, and desktop-computer makers began limiting returns from retailers. They also tailored programs for large up-front purchases, designed to maximize sell-through for particular models. For the year, unit sales grew nearly 20 percent and revenue increased about 1 percent, according to audited retail sales data from PC Data, Reston, Va. The strategy allowed larger companies to survive a trying year, but forced Toshiba America's retail desktop computer group temporarily to the sidelines, and finished PC-cloner Vision Technologies. By year's end several other clone-makers turned to Cyrix and AMD for lower-cost alternative processors, just to survive. Flatbed scanners were situated at the other extreme. A huge increase in unit sales volume more than compensated for the decline in flatbed-scanner prices. Average prices for color flatbed scanners fell more than 50 percent, and unit sales more than tripled, causing a 58.2 percent increase in retail revenue for the category. The average price of a color inkjet printer fell 14.8 percent between 1996 and 1997, but unit sales increased by 22.6 percent. Similarly, the average price of a desktop modem fell 11.5 percent, but unit sales increased 31.7 percent, compared to 1996. Laser printers saw a modest 6.5 percent decline in average retail price in 1997 and a 15 percent increase in unit sales. Notebook computers increased their contribution to retail revenue by 48.2 percent in 1997, thanks to a 69.4 percent increase in unit sales. That gain came despite a modest 12.5 percent decline in average retail prices. The average notebook computer in 1997 cost $2,250, compared to $2,572 in 1996. The average desktop computer price fell from $1,729 in 1996 to $1,460 in 1997. Copyright (c) 1998 CMP Media Inc.