PC makers still feeling quake aftershocks

 

latest developments

Dell Computer lowers earnings estimates as it and other PC makers deal with supply problems caused by last month's earthquake. "Putting less memory on every [computer] could turn out to backfire on them." - Dan Niles, BancBoston Robertson Stephens, regarding how PC makers are handling the aftershocks.

Memory problems causing trouble for Dell, others Dell and other PC makers are still dealing with rising memory costs and will feel the Taiwan earthquake's toll through the end of the year, analysts say. Taiwan quake to hurt Dell earnings The direct seller of PCs says third-quarter earnings will suffer as a result of a rise in chip prices caused by last month's earthquake. previous coverage Taiwan earthquake could affect holiday PC sales Demand for PCs remains very strong, but the scarcity of critical components, due to the Taiwan earthquake, is hitting PC makers' ability to deliver systems for the holiday buying season. Component shortages could hurt Dell Dell Computer's "be direct" business model, under which inventories are kept to a minimum, may be efficient in good times, but it can be a liability when things go awry. PC industry hit by Taiwan quake aftershocks 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.