Parts Scarcity Affects Makers of Computers
The explosive demand for lightweight, briefcase-size computers is creating shortages of some key components and forcing some manufacturers to choose between flashy features or a quick splash in the market.
Those choices will help determine how big a slice of the market will go to Orange County computer makers such as AST Research Inc., Advanced Logic Research Inc. and Toshiba America Information Systems, and suppliers such as Western Digital Corp.
When Compaq Computer Corp. in Houston confirmed last week that it is having difficulty meeting demand for its newest notebook computers, it provided a sign that the computer industry may be running behind in producing key components such as hard-disk-drive storage systems, display screens using liquid-crystal technology or the Intel Corp. microprocessors that serve as the computer’s brain.
Conner Peripherals Inc. in San Jose supplies Compaq with 2.5-inch hard disk drives that store 60 megabytes of memory. The company said it isn’t able to meet demand for the latest Compaq model because of production delays at its plant in the Far East.
Some analysts said Compaq’s problems may create opportunities for notebook manufacturers entering the market with machines that don’t depend on the latest disk-drive technology.
Those newcomers include AST Research, which will begin volume shipments of its notebook machine by February or March, and ALR, which has begun shipping its model. Joel Don, an AST spokesman, said the Irvine firm expects to meet its demand for notebook computers by April, in line with company forecasts.
Gene Lu, chairman and chief executive of Irvine-based ALR, says his company designed its 7-pound notebook computer to use smaller 20-megabyte internal drives. He said his company would have preferred to introduce a notebook with more storage capacity but was concerned about a shortage of high-capacity drives.
“Delivery is a very tough issue,” Lu said. “The hardest thing to get right now are the newest display screens; the larger disk drives (for notebook computers) are the next problem.”
Lu said he expects manufacturers to be able meet demand for high-capacity disk drives during the latter half of this year.
Western Digital Corp., an Irvine computer components maker, will begin volume shipments of its line of 2.5-inch, 30- and 60-megabyte disk drives during the June quarter, said Robert Blair, a company spokesman.
Western Digital faces a host of possible competitors in the disk-drive market, including Toshiba America Disk Products Division in Irvine, Micropolis Corp. in Chatsworth and Seagate Technology in Scotts Valley.
International Business Machines Corp. and Apple Computer Inc. are expected to enter the notebook computer market later this year. Their entry could generate demand and pose problems for smaller computer makers, who often have to wait in line for components behind their larger competitors.
