Compaq plans to intensify Japan PC war
Article Abstract:
Compaq K.K, the computer manufacturer's Japanese subsidiary, plans to slash its prices by 10 percent to 20 percent while boosting its service guarantees. Compaq is already locked in a fierce marketing war with Dell Computer Corp, the direct-sales vendor that currently sells the lowest-priced microcomputers in the country; NEC, whose strong emphasis on after-sale service has helped it garner half the domestic PC market; and IBM. The price cuts will primarily take effect on Compaq computers with high-capacity hard drives. In an effort to win the demanding Japanese PC customer, Compaq will offer three-year service warranties for free, including sending out personnel to fix machines in the user's home or office. In a separate development, Fujitsu, a minor player in the Japanese PC market, cuts prices of its FM-R desktop PCs by about one-half.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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IBM Japan begins to show signs of parent's illness
Article Abstract:
IBM Japan Ltd has been hugely successful over its 65-year history, but has recently been visited by the troubles similar to the one plaguing its parent company, including flat demand for mainframes and tough competition from smaller and cheaper machines. Some analysts believe IBM Japan may be in worse shape than IBM itself in a few years, because it has a much weaker position in the Japanese workstation and microcomputer market than the parent firm does in the United States. 1992 pretax profit was to 26.77 billion yen, or $228.2 million, down 74 percent from 103.52 billion yen in 1991. The 1992 figure does not include an extraordinary loss of 16.21 billion yen, mostly for restructuring manufacturing facilities and paying for early retirement as the firm cut its workforce by nearly 5 percent.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Intelligent Electronics, wiser now, returns to a profit
Article Abstract:
Intelligent Electronics Inc emerges from financial straits with net income of $12.2 million on $619.9 million in revenue for its fiscal 1st qtr 1993, which ended May 1. In 1991 the company bought the 57-store BizMart Inc retailing business for $195 million. Intelligent Electronics sold BizMart in March and endured a loss of $15.6 million. The company posted losses for three quarter in a row, but now Sanford's revised strategy of adhering to the middleman niche is paying off. Stock for the wholesaler is trading at $15.375 per share. The company leads among wholesalers of brand-name computers and peripherals. The experience Sanford gained in the wholesaling business did not serve him well in the conversion to retail, so he has returned to the business he knows best.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Comment about this article or add new information about this topic:
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