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

To: DiViT who wrote (33744)	6/11/1998 8:47:00 PM
From: robt justine	Respond to of 50808

David: I'll throw in my two cents. I believe that the CUBE stock drop today was precipitated by the further comments from Doug Dunn of Philips Electronics (PHG 87 7/8 down 4 1/2) that were not picked up by the news wire (AFX) that you cited in your post. Dunn further elaborated on his vision for China as well as the current effects Philips was seeing there recently. Here's the article as it was picked up on the Dow Jones Newswire: Philips Exec Sees Cons. Prdts Price Erosion Of 6%-7% In 98 Dow Jones Newswires By Anthony Deutsch THE HAGUE (Dow Jones)--Doug Dunn, chairman of the Consumer Products Division of Philips Electronics NV (PHG), said Thursday he expects a price erosion of 6% to 7% in the division's activities in 1998. Dunn told Dow Jones that while such a price erosion in the sector isn't unusual, he could see signs of possible further erosion and added he had two prime concerns for consumer products prices, both involving the Asia Pacific region. "We have two main concerns: The total demand in that region is reduced and, secondly, because the currency devaluations have increased their ability to ship at low costs." Dunn, talking to Dow Jones at a conference organized by Philips, explained that low costs "could lead to an impact on pricing in other parts of the world." "It is very hard to predict exactly where it will be. We've seen some spot effects in the U.S, some spot buying by U.S. customers at very low prices. But it is isolated," Dunn said. He declined to give a specific prediction of what the effects of the dumping could be on the overall results of Philips. Dunn added however that he hadn't seen an increase in price erosion resulting from the crisis in "any great detail." Speaking about the financial crisis in Asia, Dunn said his concern and caution about the region were increasing as the magnitude of the crisis has become more clear in recent months. "We are being realistic and cautious about the region. I'm cautioning my colleagues in the division to prepare for a difficult six to 12 months," Dunn said, China, one of Philips' target markets, is an area of concern, Dunn said. In March, Dunn said he expected China to be a "huge growth market in 1998," but now he expressed concerns the crisis could have a spill over effect into China. "We have to expect an effect and China will not be totally immune to that. I'm more cautious than six months ago and my concern has heightened since March," Dunn said. -By Anthony Deutsch; 31/20/626/0770; adeutsch@ap.org