Japanese Consider Making Portable Computers in U.S.
The Japanese manufacturers of some of the most popular portable computers in the United States are actively considering transferring production of the machines to this country to reduce trade tensions and circumvent the tariffs imposed last week on Japanese consumer goods by the Reagan Administration.
Among the locations that could be used for the newly transferred manufacturing is the Irvine plant of Toshiba America.
Officials from both Toshiba America and NEC Corp. said the production shifts are among several alternatives they are studying in order to maintain their shares of the fast-growing market for the so-called “laptop” portable computers during the trade sanctions.
The companies’ powerful 16-bit laptop computers are among the Japanese consumer products hit last Friday with the 100% increase in import tariffs, a move designed to punish Japan for failing to abide by a semiconductor trade agreement signed last year.
Several Facilities Available
John Rehfeld, vice president and general manager of Toshiba America’s Information Systems division in Irvine, said the plant there is one of several U.S. facilities the company could outfit to handle production of its two laptop models.
A NEC spokeswoman said that company has four U.S. plants that could be converted to laptop manufacturing within 30 days, if necessary.
Meanwhile, the two companies are trying to squelch fears of shortages and rumors of strict allocations to retailers of their laptop models, which have quickly become among the most popular in the country.
NEC said it has a 60-day inventory of its Multispeed laptop model, which currently retails for $1,995. Toshiba said it has slightly less than a two-month supply of its top-of-the-line, $4,000 T-3100 model and its $2,000 T-1100 system.
Both companies said they are not currently allocating their machines to retailers but admitted that they would resort to that system if they are unable to handle demand over the coming months.
“It’s a very severe situation, and there’s not a whole lot we can do,” said Toshiba’s Rehfeld.
Orders Steady
However, retailers said Wednesday that consumer demand so far has hardly reached the panic stage. At Computerland, the nation’s largest computer retailer, customer orders have remained steady, a spokeswoman said. However, she acknowledged that retailer fears have fueled an increase in orders from the company’s central warehouse, prompting the company to impose rationing of its 60- to 90-day supply of both the NEC and Toshiba models.
According to Dataquest, a San Jose market research firm, Toshiba and NEC have some of the best-selling laptop models currently available and any supply shortage could put a crimp in the emerging market for these machines, which typically are smaller, lighter, cheaper and less powerful than their desktop counterparts.
Until the trade sanctions, Dataquest had projected laptop sales this year to reach $760 million and 318,000 units, up from last year’s $444 million and 179,000 units.
