To: OLDTRADER who wrote (172311 ) 1/29/2003 4:52:05 PM From: calgal Respond to of 176387 Japan 2002 PC shipments fall 8.5%, Dell bright spot Wednesday January 29, 3:11 am ET URL:http://biz.yahoo.com/rc/030129/tech_japan_pc_1.html TOKYO, Jan 29 (Reuters) - Japan's domestic shipments of personal computers fell 8.5 percent in 2002, with one of the few bright spots a strong performance by global giant Dell Computer Corp (NasdaqNM:DELL - News), an industry researcher said on Wednesday. Multimedia Research Institute Ltd said shipments fell to 11.245 million units last year as businesses and consumers continued to put off investments in information technology and purchases of new computers in the wake of economic stagnation. Traditional PC powerhouses NEC Corp (Tokyo:6701.T - News) and Fujitsu Ltd (Tokyo:6702.T - News) both saw their shipments dive and market shares slightly shrink amid the tough operating environment. In contrast, third-ranked Sony Corp's (Tokyo:6758.T - News) shipments rose 22.6 percent, while Dell saw a 64.2 percent jump in shipments help boost its market share to eight percent from 4.4 percent. "Dell was able to vault into fourth place from seventh on the back of an aggressive TV and newspaper advertising campaign that greatly raised market awareness," Multimedia said in a statement. The industry researcher expects shipments in Japan to be relatively flat in 2003 in the 11 million range, as deflationary pressures and financial uncertainty continue to weigh. But while first-half shipments are forecast to be sluggish, Multimedia said second-half shipments are expected to show signs of an upturn in the battered PC market, rising 6.3 percent from the same period in 2002. "In the second half we expect to see strong replacement demand from big companies, as well as the effects of tax incentives to promote IT investment by small and medium-sized firms," Multimedia said. Industry leader NEC was also in danger of losing its top spot to Fujitsu in 2003, Multimedia said, particularly if Fujitsu was able to post strong results in the first three months of the year in the business market. NEC saw its market share shrink to 22.4 percent in 2002 from 23.1 percent the previous year, while Fujitsu's share dipped to 21.4 percent from 21.6 percent. Notebook computers outpaced desktops in 2002, comprising 56 percent of total shipments. The value of total shipments was 1.8 trillion yen ($15.17 billion), down 8.3 percent from 2001. Multimedia's figures come after the Japan Electronics and Information Technology Industries Association (JEITA) -- a group of 17 domestic PC makers -- estimated Japan's domestic PC shipments sank by 11 percent in 2002 to 10 million units. U.S. PC makers such as Dell are not included in JEITA's tally, which the industry group said marked the overtaking of Japan by China as the world's second-largest PC market. JEITA also said last week it expected government tax incentives and economic packages to help push up Japan's PC sales by five percent in 2003 to 10.5 million units. The following is a table of Multimedia's results for 2002, including percentage gains or losses from the previous year. MAKER SHIPMENTS MKT SHARE PCT CHG Y/Y (millions) (%) (%) NEC 2.52 22.4 -11.3 Fujitsu 2.41 21.4 -9.1 Sony 1.52 13.5 +22.6 Dell 0.895 8.0 +64.2 Toshiba 0.81 7.2 -12.0 IBM Japan 0.715 6.4 -32.9 Hitachi 0.625 5.6 -5.3 HP Japan 0.39 3.5 +1.3 Others 1.36 12.0 -31.7 (Full company names: Toshiba Corp (Tokyo:6502.T - News), IBM Japan Ltd, Hitachi Ltd (Tokyo:6501.T - News), Hewlett-Packard Co (NYSE:HPQ - News)) ($1=118.67 Yen)