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(Japanese Site)

  • Peripheral Gear Makers Pessimistic After Celeron Debut
  • March 30, 1998 (TAIPEI) -- Makers of computer peripheral equipment said that purchases of PCs are expected to be stagnant in Taiwan, as uncertainties surround the Covington microprocessor and the 440EX chip set, two parts of Intel Corp.'s Celeron motherboard that is slated to appear later this year.
    For this reason, suppliers say PC prices are likely to continue sliding, and earnings of computer companies may decline.

    Intel's Pentium II line has obtained a large share of the local market since the beginning of this year.

    Prices of the line are still moving downward. In addition, the market trend is not clear, as Intel's Celeron lineup is scheduled to debut in the second quarter.

    Motherboard makers said they will introduce PCs at various levels and prices, and let market demand determine the mainstream model.

    Local original equipment manufacturers are likely to see fewer orders in the first quarter, because major computer companies in the United States still have large motherboard stocks, said a spokesman at Elitegroup Computer Systems Co. Ltd.

    In the second quarter, local makers may enjoy rising output, but profit margins are likely to fall on sliding OEM prices.

    The influence is expected to expand to the computer peripheral sector. Prices of computer cases and switchable power supplies declined 5 percent to 10 percent in the first quarter. Prices of printed circuit boards also have fallen. As for monitors, a manufacturer said that prices have remained low since the beginning of this year.

    Major buyers have recently taken wait-and-see stances, according to the manufacturer.

    Related story: Intel Japan Chairman Sees Small Market for Cerelon

    (Commercial Times, Taiwan)

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    Updated: Sun Mar 29 14:28:39 1998