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  1. Technology
March 27, 1988


By CBR Staff Writer

Computer manufacturing in the US has been less profitable than most other industrial activities over the past several years, according to investment banker Broadview Associates Inc of Fort Lee, New Jersey: Newsbytes reports that Broadview surveyed 269 US computer hardware and equipment companies and found they had an average return on equity of only 6.5% in 1987 – although a large number of poor performers dragged down the overall results; by contrast, most major American companies return 11% of 12% on equity, and reasons offered for the poor performance were intense competition from abroad, and short life cycles on production cutting the time for companies to recoup their investments; better stick to software – a survey of nearly 200 software and services companies found a healthy average return on equity of about 18.6%.

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