Interview:
INTERVIEW-NEC seeks more share despite Compaq/DEC
Reuters, Thursday, February 19, 1998 at 02:33
By Josephine Ng
SINGAPORE, Feb 19 (Reuters) - Japan's NEC Corp (TOKYO:6701) is
targetting a bigger share of the server market both in Asia and
globally, senior officials said on Thursday.
This is despite potential threats from the merger of Compaq
Computer Corp (NYSE:CPQ) and Digital Equipment Corp (NYSE:DEC) (DEC).
"In Asia Pacific, excluding China, we are aiming for 15
percent market share totalling 30,000 units," by 2000, Shuji
Nose, NEC's assistant general manager for workstations and
servers marketing, told Reuters in an interview.
Kazuhiko Kobayashi, NEC's associate senior vice president,
said the company would have a 3.5 percent share or 1.6 million
units of the world's server market in its fiscal year ending
March 31, 1998.
The company was aiming to raise its global share to 10
percent or 2.7 million units by the year ending March 31, 2001,
he said.
NEC got into the server business in the Asia Pacific less
than two years ago, Nose said.
For its fiscal year ended March 31, 1997, NEC sold about
3,000 units of servers in Asia, he said.
For the current year ending March 31, 1998, "we will achieve
6,000," and NEC was looking at selling 10,000-11,000 units in
the next fiscal year, Nose said.
Officials said the Compaq/DEC merger presented varying
degrees of threat to its business.
In January, Compaq announced it was acquiring DEC for US$9.6
billion.
"In Japan, there is no effect from Compaq and Digital,"
Kobayashi said.
He said NEC would be able to hold its share in Japan as
Compaq and Digital did not have strong systems or customer
support there.
In 1997, NEC had a 30 percent share in the server market in
Japan against Compaq's 13 percent, Kobayashi said.
But he conceded that the merger presented "a big threat for
us in worldwide business."
Kazuhiko Kobayashi, NEC's associate senior vice president,
said the company would have a 3.5 percent share or 1.6 million
units of the world's server market in its fiscal year ending
March 31, 1998.
The company was aiming to raise its global share to 10
percent or 2.7 million units by the year ending March 31, 2001,
he said.
NEC got into the server business in the Asia Pacific less
than two years ago, Nose said.
For its fiscal year ended March 31, 1997, NEC sold about
3,000 units of servers in Asia, he said.
For the current year ending March 31, 1998, "we will achieve
6,000," and NEC was looking at selling 10,000-11,000 units in
the next fiscal year, Nose said.
Officials said the Compaq/DEC merger presented varying
degrees of threat to its business.
In January, Compaq announced it was acquiring DEC for US$9.6
billion.
"In Japan, there is no effect from Compaq and Digital,"
Kobayashi said.
He said NEC would be able to hold its share in Japan as
Compaq and Digital did not have strong systems or customer
support there.
In 1997, NEC had a 30 percent share in the server market in
Japan against Compaq's 13 percent, Kobayashi said.
But he conceded that the merger presented "a big threat for
us in worldwide business."
In Europe, NEC in partnership with French computer group Cie
des Machines Bull (SBF:BULP) would help it to compete with the
merged Compaq/DEC, he said.
NEC holds a 17.7 percent stake in Bull.
In Asia, he said companies required good reseller and
distribution partnerships to reach small and medium-sized
corporate customers, an area in which the big Compaq/DEC might
not have an edge.
Noel Hon, NEC's Singapore managing director, added that the
company had strength in niche areas like security systems and
systems integration.
But in the general market area, once Compaq and Digital
sorted out their integration problems, "it will have an impact
on the market."
Kobayashi said NEC had started to manufacture personal
computers on a "build-to-order" (BTO) basis, a method which
Compaq has aggressively adopted to become more efficient.
In two to three months time, NEC would make its server
products by BTO in the U.S. and in France, he said.
On Thursday, NEC launched a new series of server products
based on Intel (NASDAQ:INTC)'s Pentium Pro and Pentium II processors
in Singapore.
-- Singapore Newsroom (65) 870-3080; Fax (65) 776-8112
-- Email: singapore.newsroom@reuters.com
Copyright 1998, Reuters News Service |
