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The Americas
MARKET TRENDS
Although rising interest rates accompanying a contraction in
quantitative easing could potentially put downward pressure on
the business climate, modest growth is projected for the US
economy in 2014. Along with a rebound in consumer spending,
the economy will likely benefit from an increasingly strong
recovery emerging in the corporate sector, fueled by robust
domestic demand, and a turnaround in overseas economies.
Turning to South America, Brazil, which accounts for roughly
half of the entire continent’s economy, is expected to generate
a certain level of special demand as it hosts the 2014 FIFA
World Cup Brazil™ and Rio 2016 Olympic and Paralympic
Games™. However, uncertainty continues to cloud the future of
the Brazilian economy.
In a follow-up to firm year-on-year growth of 5.5% in 2013,
the IT market in the Americas is projected to see year-on-year
growth of 4.7% in 2014. The IT services market in North America
is expected to post modest growth, led by emerging fields such
as mobile and cloud computing, big data, and SNS. Growth is
also projected for the IT services market in South America. Over-
all, the 2014 IT services market for the Americas is forecast to
grow 3.1% from the previous year, continuing from the 2.7%
year-on-year growth recorded for 2013. In the hardware market,
it appears likely that negative growth in high-end servers will
continue, whereas mid-range and low-end servers are expected
to lead hardware expansion. Consequently, growth in the server
market on the whole is projected to increase by 3.8%, recovering
from a 2.5% decline in 2013. In the storage market, in a turn-
around from a 1.2% decline in 2013, the forecast for 2014 is
growth of 3.4%. In the PC market, while 2013 saw a minor
decrease of 0.2% in the conventional PC market, that downturn is
expected to grow to 4.6% for 2014. By contrast, expansion in the
tablet and e-book reader market is forecast at 20.1%, surpassing
year-on-year growth of 11.9% recorded in 2013. The North Ameri-
can optical transmission market, meanwhile, is expected to con-
tinue its steady expansion, following up growth of 10.9% in 2013
with year-on-year growth of 7.3% for 2014.
INITIATIVES GOING FORWARD
In the Americas, we are working to expand business scale and
improve our market recognition with Fujitsu America at the core
of business operations. In North America, we have made progress
in establishing a foothold for our infrastructure services business
due in large part to major outsourcing business deals won in
recent years, coupled with our first Tier 3 datacenter in Canada.
Along these lines, we will continue to focus on strengthening and
expanding our infrastructure services business for all of North
America. In the US, while we have been working to provide ser-
vices tailored mainly to corporate customers through three
regional datacenters, in May 2014, we added two new sites, one
on each coast. To meet the needs of Japanese companies expand-
ing into the Americas, we will offer Japan-quality outsourcing
services, together with the installation of private cloud infrastruc-
ture, to deliver highly reliable ICT services to our customers.
In the applications business, we aim to expand business and
improve earnings. To this end, we will work to boost private-
sector demand, and in central and western Canada, heighten our
sales capabilities with respect to powerful package solutions
1
2
1Fujitsu 25.4%
2Company A 23.3%
3Company B 20.7%
4Company C 7.5%
5Others 23.1%
0
600
1,200
900 828.9
944.8 975.9
910.7
2013 2015 2016 20172014
868.1
300
FUJITSU DATA
MARKET DATA
Graph 01 Graph 02 Graph 03
NEXT-GENERATION METRO WDM MARKET
SHARE IN NORTH AMERICA (REVENUE BASIS)
IT MARKET FORECASTS (THE AMERICAS) NET SALES* AND OPERATING INCOME
MARGIN
–150
0
150
450
300
293.8 277.5 273.7
298.4
2010 2012 2013 20142011
6
4
2
0
–2
0.6 0.9
0.2
386.0
1.7
-0.9
(Billions of U.S. dollars) (Billions of yen) (%)
(Years ended March 31)
(Source: Ovum, Market Share Spreadsheet & Analysis:
1Q14 Global ON, May 2014)
(Source: IDC, May 2014 “Worldwide Black Book Query Tool,
Version 1, 2014”)
(North and South America) * Including intersegment sales
Net sales (left scale)
Operating income margin (right scale)
3
4
5
Explanations for underlined words can be found in the glossary on pages 160-162.
060 FUJITSU LIMITED ANNUAL REPORT 2014
INITIATIVES BY REGION
THE AMERICAS