Profit margins in the computer leasing industry have been savagely compressed according to The 1990 Survey of the European Computer Leasing & Trading Industry, down to just 5.7% in 1990 from 25.7% in 1989. The survey says that this is attributable in part to competitive pressures, exacerbated by the recession and budget constraints, but it also suggests that disproportionate growth in overhead has played a part. As with last year’s report, the key issue is the pricing and general policies of IBM and its financing subsidiaries. They are regarded not only as a serious competitive threat in leasing, but also in the used equipment market, traditionally dominated by independent companies. The most striking change in the top 10 key issues is the importance of image, up to fourth place from seventh in 1989. However, the impact of Atlantic Computers receivership undoubtedly influenced respondents, and that besounding crash was number seven in the list of key issues. Only 24.2% of respondents say they are satisfied with IBM’s pricing policies, although that’s up from 1989 when the figure was 17.1%. DEC scored 46.2%, down from 57.1%, while others can claim 52.2%. IBM scores particularly well with mainten-ance and parts, scoring approvals of 72.7% and 53.7% respectively, dramatic improvements on the 1989 figures of 39% and 53.7%. The top two competitors are IBM and Comdisco, while DEC and ECS share third place. The report suggests that the 70% of respondents ranking IBM in the top three, up from 55%, are influenced by the disappearance of Atlantic, and IBM’s designation by the Atlantic administrators as the preferred intermediary. The 1990 Survey of The European Computer Leasing & Trading Industry is conducted by Gartner Group Inc for the Shirley, Solihull-based European Computer Leasing & Trading Association.
