Australian memory vendor Hypertec will now concentrate on its memory business following the recent announcement that it is quitting the PC box game [see story last issue Page 1]. MD Geoff O'Reilly told ARN that market shifts quickly overtook Hypertec when it started making PCs just a year ago. "Prices and margins dropped so quickly we just couldn't keep up. Looking at the prognosis for 1997 we could have held on for a while, but we decided to cut our losses and get back to memory."
ARN asked if the memory game wasn't just as bad at returning any margin to the vendors. "No. As the price of memory dropped to a third of what it had been, people suddenly started buying a lot of it. But if the price of a PC drops to a third, you don't buy three PCs for your desk." He added that many OEMers have immediately started buying Hypertec memory again, since they no longer perceive the company as a competitor.
O'Reilly said the company won't renew the lease on its original North Ryde address, but will probably regroup in one of the two new units that housed the PC assembly line and warehouse. He added "don't forget that we're still making PCs. It's a neat wind-down. We'll probably put out another 3000 units to fulfil orders and keep faith with resellers who are in the middle of projects."
Hypertec will honour all warranties on its PCs, through its hotline and parts stockpile, and also through the Wang service infrastructure around the country. Several companies are in negotiations with Hypertec to buy the assembly equipment.
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