Reaction is cool as PC firms export price war to Japan
Article Abstract:
US personal-computer vendors brought their price war to Japan in Oct 1992, but may still have a hard time making inroads against NEC Corp, which holds about one-half of the domestic market. Japanese customers tend to prioritize service and function over price, especially when buying complicated items like computers. The Japanese market is currently fragmented, with at least four major platforms that are not compatible with each other. NEC grabbed market domination by building the broadest distribution system and a vast library of 15,000 software programs. Vendors of IBM compatibles have recently agreed on a standard Japanese-language operating system. Japanese retailers may shy away the low-cost IBM compatibles of Compaq, IBM, DEC and others because of their low profit margins.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Profit at IBM's Japanese unit fell 21% in 1990; analysts say sharp decline shows computer maker losing ground to rivals
Article Abstract:
IBM Japan Ltd reports a 21 percent drop in earnings for FY 1990. Industry analysts say the deterioration of IBM's most important overseas market is part of an overall slowing of the Japanese mainframe computer market. The loss in earnings is the second consecutive loss for IBM and the largest the computer maker has ever suffered. IBM Japan's pretax profit for 1990 was 154.38 billion yen ($1.1 billion), which is down from earnings of 194.88 billion yen for 1989. Revenue for 1990 was 1.326 trillion yen, up slightly from revenues of 1.312 billion yen in 1989. The company's net income after taxes was 82.82 billion yen in 1990, down 19 percent from the 1989 net income after taxes of 102.03 billion yen. Japanese companies report financial earnings once a year.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Comment about this article or add new information about this topic:
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