Fujitsu 2009 Annual Report Download - page 44

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–150
150
0
300
450
600
–2
0
2
8
6
4
298.9
1.5
365.2
–0.4
2.0
1.9
3.7
469.9
442.3
363.4
2005 2006 2007 2008 2009
0
400
200
800
600
594.0
658.6
628.2
602.8
589.2
2008 2009 2010 2011 2012
Market Trends
The North American IT market in 2009 is
expected to contract 0.8% year on year,
reflecting the impact of the financial
crisis triggered by the collapse of the
subprime mortgage market, and the
rapid economic recession that followed.
In this climate, the IT services market
is expected to remain comparatively
firm, with projected year-on-year
growth of 2.3%. Cause for unguarded
optimism, however, remains unwar-
ranted given the possibility that com-
panies could reduce corporate IT
investment going forward. In the cur-
rent environment, there is also the
risk that new projects could be can-
celled or postponed, and stronger
downward pressure on services prices
could emerge.
The hardware market, meanwhile,
is likely to face a generally adverse envi-
ronment, as the impact of reductions
in corporate IT investment becomes
more apparent. The server market
overall is expected to worsen com-
pared with the previous year, with a
forecast year-on-year drop of 17.6%.
The high-end server market, in particu-
lar, is expected to contract a sharp
30.7% from a year earlier, as demand
shifts more swiftly toward low-end
servers due to improved processor per-
formance. In the storage market, which
previously enjoyed stable growth, fore-
casts now call for a year-on-year con-
traction of 3.7% in 2009. A similarly
tough environment looms for the PC
market, with spending projected to fall
11.6% from the previous year. In addi-
tion to lower shipment volumes caused
by deteriorating market conditions,
spending will likely decrease due to
price drops resulting from the increased
market share of netbooks, a class of
low-priced PCs with minimal function-
ality used primarily for Internet and
email access.
Initiatives Going Forward
To meet the needs of its customers,
Fujitsu reorganized its operations in
North America to build a framework
for faster, seamless provision of high-
value-added IT solutions.
In October 2008, we established
Fujitsu North America Holdings to
serve as a holding company for the
three main solutions subsidiaries in
North America—Fujitsu Consulting,
Fujitsu Computer Systems and Fujitsu
Transaction Solutions. Through Fujitsu
Consulting, we offered services rang-
ing from consulting to system inte-
gration (SI) and business process
outsourcing (BPO). Fujitsu Computer
Systems sold and maintained servers,
storage devices, and other hardware.
Fujitsu Transaction Solutions, mean-
while, offered Point of Sale (POS) sys-
tems and other products and services
focused on the retailing sector. In
April 2009, these three companies
THE AMERICAS
(Billions of yen) (%) (Billions of dollars)
Net sales (left scale)
Operating income margin (right scale)
* Including intersegment sales
(Source: IDC The Worldwide Black Book Q1 2009)
(AMERICAS: North and South America)
(Years ended March 31)
Net Sales* and Operating
Income Margin
IT Market Forecasts (Americas) Next-Generation Metro WDM Market
Share in North America (revenue basis)
(Source: Ovum-RHK, March 2009)
Fujitsu
21.4%
Company A 18.2%
Company B 14.1%
Company C 13.1%
Company D 8.0%
Company E 6.6%
Company F 6.3%
Others 12.4%
Company A
Company B
Company C
Company D
Company E
Company F
Others
Initiatives by Region
042 ANNUAL REPORT 2009
FUJITSU LIMITED