Rebirth of Northern Technology

US xBM

PC business unit project seminar.

Today’s topic is laptops.

The development of PC has been more than 10 years. In the past 10 years, many changes have taken place in the market. In 1982, the company published the "open standard" for PCs. This open standard greatly promoted the industrialization of PCs.

But when the PC standard gradually dominates the personal computer standard, compatible manufacturers are also booming.

In the portable market, Compaq took the lead in launching the LTE series of notebooks, pioneering PC portables. The term laptop comes from Compaq LTE laptops.

Notebook computers have higher profit margins due to higher prices. In this market, xBM is absolutely afraid to lose it.

xBM's launch of its own high-end notebook has become an inevitable option.

This meeting is just a routine survey to see which technologies can be used in future products. It can effectively distinguish xBM products from similar products on the market.

"I recommend a 10-inch AMLCD."

The marketing staff put forward their own suggestions. TFT-LCD, has not yet called its own name, it is classified as Activematrix (active array) LCD. TFT is the realization method, and AM is the realization purpose.

"In the notebook market, we are already a latecomer. Not using this high-speed display is not enough to effectively distinguish it from other compatible computers. Those analysts will definitely say that we are copying Compaq's ideas. This is absolutely Not acceptable!"

After several years of development, while the PC market is gradually growing, the problem of homogeneity has also appeared. All manufacturers use the same CPU, memory, and hard disk. There are fewer and fewer reasons for users to choose xBM.

Expensive TFT-LCD has become the only choice for xBM.

"I also agree. The performance of the product must not be compromised with price."

The company’s brand image is the most important. Notebooks are either not made, but only the best.

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"Is there a problem with the supply of AMLCD panels?"

The meeting process soon came to the discussion of important parts.

Any kind of new things, when they first appear on the market, will have the problem of high prices and small quantities.

In 1991, the price of a 10-inch TFT-LCD panel exceeded US$2,500. Even now, the price of the panel has been hovering around US$2,000.

The price of LCD panels in this era is unimaginable for later generations. In 2007, the price of a 15-inch panel was less than a hundred dollars.

Of course, although the initial LCD price was high, it dropped quickly. According to the original history, the price of the panel fell to US$1,200 in mid-1994 (a large amount of new production capacity was released), and to US$830 in early 1995.

"There is a risk in this place. The output of several suppliers on the market is not very large."

"How about DTI?"

DTI is a joint venture company of xBM.

"Their yield rate has not been high. Until now, the yield rate has not reached 15%."

In the semiconductor industry, 70% is considered the pass line for the yield rate. Below this number, you will lose money. LCD may be special, but 15% is too low!

In addition, there is another problem here. The output of DTI simply cannot meet the needs of the project.

"Let's follow up. Let them increase production as much as possible. In addition, let them lower the price. Their offer is really outrageous."

If AMLCD does not reduce the price, almost half of the price of the notebook will be eaten by the display.

"It's difficult. They want them to increase production and reduce prices at the same time."

"Try your best."

The boss has nothing to do. The yield rate is a persistent problem in the TFT-LCD industry.

Everyone just hopes that with the increase in output and productivity, the price of this expensive display can decrease simultaneously. Some experts now predict that the price of 10-inch AMLCD can drop to around US$1,200 in 1993.

I hope so, otherwise, who works for whom is not always certain.

"Are there alternative suppliers?"

According to xBM's company procurement policy, key parts and components should be backed up.

"We have contacted NEC and Sharp, and the technical requirements have been sent to them. We are waiting for their quotations."

TFT is only produced by a few companies in the world, and the product sizes of these manufacturers are still different. In the construction of the first generation line, each family has its own magical powers. There is also a difference in the factory specifications of the product.

"What is their output?"

"Facing the same problem, the yield rate is not high, and the output is not large."

"Okay, you can follow up actively."

There is no way for large project managers. Based on the production capacity of TFT-LCD manufacturers, the total of these companies on the market cannot meet the needs of the xBM family.

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"But there is another situation, another supplier has come to the door."

"There are suppliers?"

"Correct!"

"Is it Korean or Taiwanese?"

"No, this is our American supplier. Kerui, they used to do LEDs."

"Do we have AMLCD suppliers in the US?"

When the big project manager heard the news, he immediately became energetic.

"Yes! And their products are very cheap! The 10.4-inch panel is only 1600 US dollars!"

DTI’s quotation is always above $2,000. It is estimated that NEC will not be cheap.

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