PC industry hit by Taiwan quake aftershocks.
Published:
13 October 1999 y., Wednesday
The impact of last week_s earthquake in Taiwan will take a while to sink in, so look for problems in the PC market later rather then sooner. Some of the most ominous indicators of a tight market to come are a steep rise in memory prices over the past week, a hike in graphics chip costs, and a lack of core support components for processors. The result could be higher PC prices, a shakeup of the "free" PC market, delays of some PC models, and depressed earnings. Hewlett-Packard chief executive Carleton "Carly" Fiorina said Friday that fourth- quarter growth will take a hit because of the earthquake. We are sure of some disruption and delay in some elements of our PC supply chain," she said Friday. Also, BancBoston Robertson Stephens downgraded Dell stock Friday because of, among other reasons, the recent supply issues caused by the Taiwan earthquake, according to electronics analyst Daniel Niles. Meanwhile, component suppliers are raising prices.
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