Fujitsu 2012 Annual Report Download - page 56

GRAPH 1
Next-Generation Metro WDM Market Share
in North America (Revenue Basis)
1 n Fujitsu 29.6%
2 n Company A 19.3%
3 n Company B 17.6%
4 n Company C 12.0%
5 n Others 21.5%
1
2
3
4
5
(Source: Ovum, Market Share: 1Q12 ON Global,
June 2012)
GRAPH 2
(Source: IDC The Worldwide Black Book Q1 2012)
(Americas: North and South America)
0
300
600
1,200
900 765.2 818.9 925.0 971.0
876.3
2011 2013 2014 20152012
(Billions of U.S. dollars)
IT Market Forecasts (Americas)
GRAPH 3
Net Sales* and Operating
Income Margin
–150
0
150
300
600
450
469.9
293.8 298.4
365.2
2008 2010 2011 20122009
8
6
4
2
0
–2
2.0
0.6
–0.4
0.9
277.5
0.2
(Billions of yen) (%)
(Years ended March 31)
n n Net sales (left scale)
Operating income margin (right scale)
* Including intersegment sales
Market Trends
The IT market in the Americas in 2012 is expected to grow at a
comparatively high rate of 7.4% year on year. This represents a
trend of continued growth, despite falling short of the consider-
able 7.0% growth rate in 2011. In the United States, the econ-
omy is rebounding firmly overall, with concerns of a double-dip
recession having mostly dissipated. Although causes for concern
persist, among them high unemployment and escalating gaso-
line and crude oil prices, business performance and profitability
are on the rise among large companies. GRAPH 2
In 2012, the IT services business in the Americas is expected
to grow 4.8% year on year, a modest but positive improvement
following the 4.5% growth of the previous year. Substantial
growth is anticipated in fields such as cloud computing, social
networking and big data analysis. In addition, the growing use of
smartphones, tablet PCs and other mobile devices is expected to
drive the market.
The hardware market is expected to remain on an overall
growth trajectory during 2012, though there are signs of uneven-
ness in individual products. The server market is projected to
expand 0.1% overall, virtually flat from the 0.3% year-on-year
growth in 2011. The market for high-end servers is expected to
decline 21.0% year on year, a sharp contraction compared to the
relatively modest decline of 1.6% in 2011. The mid-range server
market is projected to expand considerably, by 10.4%, continuing
growth albeit at a slower pace compared to the 13.0% growth of
the previous year. The market for low-end servers is expected to
rise 5.9% year on year, substantially reversing the year-on-year
decline of 0.9% in 2011. The storage market is projected to
expand steadily with 7.0% growth, largely the same level as the
7.5% growth seen in 2011. The PC market is expected to see
significant growth of 12.6%, further exceeding the 10.9% growth
in 2011 and reflecting greater consumer and corporate demand
for tablet computers. The communication devices market is
projected to continue expanding steadily at a high rate of
growth, although the 11.0% growth expected for 2012 is sharply
lower than the 20.3% seen in 2011.
Initiatives Going Forward
In April 2009, Fujitsu merged three of its North American
subsidiaries to establish Fujitsu America as the core of business
operations in the Americas. An innovation program designed to
promote expansion in business scale and boost market name
recognition in the Americas is currently being implemented.
As a result, we were able in 2011 to win large-scale business
deals for infrastructure services in the United States that will
provide momentum for operations. We will continue the push to
win more deals of this type in 2012. Furthermore, we are raising
the added value of infrastructure services, including cloud busi-
ness deals, and promoting a greater rate of return by focusing on
the application businesses of partner companies such as SAP,
Oracle, Salesforce.com, and Microsoft.
In the platform products business, we will continue to pro-
mote x86 server sales through channel upgrades and other sales
THE AMERICAS
054 FUJITSU LIMITED ANNUAL REPORT 2012