To: Paul Engel who wrote (91940 ) 11/9/1999 6:58:00 AM From: puborectalis Read Replies (1) | Respond to of 186894
Tuesday November 9 5:25 AM ET Japan PC Shipments Soar Amid internet Boom By Yuka Obayashi TOKYO (Reuters) - Japan's domestic shipments of personal computers (PC) surged 34 percent in the April-September period, driven by purchases of home-use PCs by people eager to access the Internet, an industry group said. Domestic PC shipments jumped to a six-month record high of 4.39 million, from 3.27 million in the same period last year, the Japanese Electronic Industry Development Association (JEIDA) said on Tuesday. The surge was due mainly to a sharp increase in first-time PC buyers wishing to surf the Internet and exchange e-mail, as well as by falling PC prices, an official at JEIDA said. In a sign that the global Internet boom has finally reached Japan, purchases of domestic home-use PCs soared 60 percent in the April-September half from a year earlier, while sales of business-use PCs expanded by 20 percent, the industry official said. Japan is the world's second-biggest PC market after the United States, but household ownership remains low at around 10 to 20 percent. Major PC manufacturers such as NEC, Fujitsu, IBM Japan and Compaq Computer, in an effort to profit from that growing consumer demand, have rushed to offer low-cost, user-friendly PCs that can be connected to the Internet by pressing a single keyboard button. ''Introduction of more accessible PCs, like ones costing less than 100,000 yen, helped boost personal-use PC demand,'' said Motoharu Sone, an analyst at Universal Securities. Strong Demand to Continue Reflecting the strong results for the first six months of the Japanese financial year, JEIDA, whose members include 19 PC makers operating in Japan, has revised up its PC shipments forecast for the year ending next March -- to 9 million units, from its previous estimate of 8 million units. The revised forecast represents a 19 percent increase from last year's 7.54 million units. ''Although corporate demand in October-December is expected to weaken as many firms have dealt with the millennium computer bug problem ahead of year 2000, the decline may not be as great as we earlier expected given the healthy growth in the last few months,'' the JEIDA official said. Private research company IDC Japan holds an even more optimistic view of future trends, and expects domestic PC shipments will top 10 million units this business year. ''Home-use PC sales will grow 45 percent for the year, riding the wave of internet expansion which has accelerated since last year in Japan, while the corporate market is also seen to be strong with a 14 percent rise,'' Miya Akatsu, research manager at IDC Japan said. Even companies which have stopped purchasing new PCs ahead of the new year may place orders by next March, the end of the business year when a rush of corporate purchasing is usually done, she added.