To: Chuzzlewit who wrote (72546 ) 10/16/1998 12:07:00 PM From: Mohan Marette Respond to of 176387
<Taiwan> PC pricing - Leo increases PC prices in Taiwan by $30.00. Paul: Here is some relevant information concerning PC prices in Taiwan. ================================== Leo Raises PC Prices to Cope with Higher Operating Costs October 9, 1998 (TAIPEI) -- Leo Systems Inc., a Taiwan-based PC maker, raised its PC prices to cope with higher component prices, the requirement for recycling of used computers and other factors. Leo raised the prices of its desktop PCs by an average of NT$1,000 (US$30) in early October. This followed a similar action last month by Synnex International Technology Corp., which raised the prices of its Celeron 300MHz and Pentium II 300MHz desktop models by an average of NT$1,000. An official at Leo Systems said that the price increase was essential. Costs of related products, such as DRAM microchips and monitors, have risen since July, and this has increased overall production costs. In addition, the new regulation that requires the recycling of used computers as well as the application of EMC technology have boosted operating costs. The company increased the prices of its desktop models in early October. Prices of Celeron 333MHz PCs rose to NT$38,500 (US$1,160), from NT$36,900, and prices of its Pentium II 350MHz PCs rose to NT$47,900 (US$1,440), from NT$46,900. The spokesman said that Leo Systems started to feel the pressure of higher operating costs in September, and was forced to raise prices to maintain profits. The addition of 65MB of memory and a 15-in. monitor added NT$200 to the production cost of a computer, while recycling and EMC systems boosted costs by an additional NT$400. However, the Leo Systems spokesman noted that higher prices will likely put a lid on sales, which are already feeling the brunt of the economic slump. In September, Synnex Systems, Leo Systems, and Acer Sertek Inc. reported that their PC sales declined from a month earlier. Sales in October are expected to decline further. (Source:Commercial Times, Taiwan)