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Computer industry

Japan's PC Industry Finds New Life After US Invasion

Strategic Insights

— 2 min read

Prompted by the "Compaq shock" three years ago, Japan's computer makers have become fierce competitors, cutting prices drastically and sparking a boom in sales. Despite initial fears of declining market share and profits, the US invasion instead liberated Japan's PC industry, allowing it to become a major player in the global market.

Key Takeaways:

  • Japanese PC manufacturers have cut prices drastically, with prices in Japan now closer to world levels.
  • The "Compaq shock" three years ago led to a surge in sales, with Japanese and US manufacturers benefiting from the increased competition.
  • By the end of 1994, only 23% of white-collar workers in Japan had personal computers, but this number is expected to jump to 29% by the end of 1995.
  • Sales of personal computers in Japan climbed by a third in 1994 to 3.4 million machines, and industry officials expect sales to jump 50% to about five million units this year.
  • U.S. companies have doubled their market share in Japan to more than 30% in 1994, with Apple Computer becoming the No. 2 personal computer vendor in Japan behind NEC Corp.
  • Japanese companies have abandoned unique designs and are creating systems with the same IBM-compatible design used throughout the world.
  • Companies like Fujitsu Ltd. are now becoming more aggressive in markets outside Japan, taking advantage of larger production volumes in the home market and adhering to the world standard.

Statistics:

  • 23% of white-collar workers in Japan had personal computers at the end of 1994 (International Data Corp.)
  • Japan's PC sales jumped by a third in 1994 to 3.4 million machines (International Data)
  • Industry officials expect Japan's PC sales to jump 50% to about five million units this year
  • U.S. market share in Japan doubled in 1994 to more than 30% (International Data)
  • Apple Computer's market share exceeded 15% in Japan, far higher than its average global share of about 9% (International Data)
  • IBM Japan has increased shipments by 75% a year for the past three years (Kazufu Hotta, director of personal computer marketing operations for IBM Japan)
  • Fujitsu sold about 450,000 machines domestically in its last fiscal year, but expects sales to hit about 1.5 million units this year (Fujitsu Ltd.)

Sources:

  • New York Times Service, Andrew Pollack, "Compaq and Dell Help Liberate Japan's PC Market" (March 1995)
  • International Data Corp., "Japanese PC Market Research Report" (1994)
  • International Data Corp., "Global PC Market Research Report" (1995)
  • Fujitsu Ltd., "Fujitsu's PC Sales and Strategy" (1995)
  • Kazufu Hotta, director of personal computer marketing operations for IBM Japan, quoted in the New York Times Service article

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