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

To: rupert1 who wrote (54197)	3/19/1999 7:24:00 PM
From: rupert1	Respond to of 97611

Club Thread Compaq Targets $1.5 Bln in Greater China Sales TonyL106 (48/M/San Jose, CA) Mar 19 1999 2:02PM EST Compaq Targets $1.5 Bln in Greater China Sales: Bloomberg Forum Taipei, March 19 (Bloomberg) -- Compaq Computer Corp. is targeting sales of $1.5 billion next year in China, Hong Kong and Taiwan, the company's manager for the region said. The sales target is a ''significant increase'' from the present level of sales, Philip Yu, president of Compaq's Greater China Division, told the Bloomberg Forum. He declined to disclose last year's sales figures, but said just over 50 percent of Greater China sales now come from the mainland. Compaq and other foreign computer system makers are boosting their presence in mainland China, seen by many analysts as one of the fastest-growing markets for information technology. Sales of personal computers in China rose 29.5 percent last year to 3.9 million units, the second-fastest growth in Asia after India, according to International Data Corp. As part of its effort to expand sales in China, Compaq two months ago began pricing some of its products in yuan rather than U.S. dollars. Yu said the change was in response to tighter controls on foreign exchange, which resulted in ''some situations where people may not have enough ... dollars to buy our products.'' Compaq also opened a factory in Shenzhen this week. ''We will be doing local manufacturing, local sourcing -- local distribution, naturally -- and we'll sell our products in local currency,'' Yu said. The company's existing Greater China investments are about $30 million to $40 million, with an additional $30 million to be invested in the mainland over the next 24 months. Compaq is also looking at ''some very significant investments in Hong Kong and Taiwan,'' Yu said, including a planned manufacturing technology sales center in Taiwan and ''possibly'' a telecommunications products unit in Hong Kong.