There has been a growing chorus of concern in the US that the sturdy growth in the European market that for many computer companies has offset dull conditions back home, may be coming to an end – Apollo’s German problem is cited, alongside the concern voiced at Nixdorf Computer AG that profits will grow little if at all this year – but a more detailed look by the Wall Street Journal suggests that it is very specifically the West German market that seems to have gone ex-growth and that the other major European markets – the UK, France, Italy – remain buoyant: the problems in Germany are put down to the strengthening Deutschmark, which has made life tougher for exporters and made them less willing to invest in new equipment, coupled with the fact that the accountants have taken over from DP managers in specifying computer equipment, which has led to a widespread attitude that we don’t need any more computers, and a near saturated market; Comparex was forecasting 10% growth this year, down from 16% last year.
