AST Signs Japanese Distributors for Its Hybrid Computer

AST Research Inc., an Irvine-based personal computer maker, has signed up three distributors for its new made-for-Japan computer, overcoming the final obstacle to beginning sales next month of the hybrid machine.

The machine drew strong interest when it was first announced in July because it was the first time an outside company had challenged NEC Corp.’s dominance of the Japanese personal computer market with a compatible machine.

AST’s DualStation 386SX (previously named the Dual SX/16) is compatible with both the NEC 9801 computer, which has become the standard in Japan, as well as with the IBM AT.

“We are committing significant resources to the development and promotion of the DualStation,” said Safi Qureshey, AST co-chairman and chief executive.

Japanese observers who attended Thursday’s conference, however, were skeptical of how effective a challenge to NEC the DualStation could mount.

“In Japan there isn’t much demand for IBM ATs,” said Seiji Matsufuji, a reporter for Nikkei Personal Computer, a trade publication. While AST was smart in making the computer NEC-compatible, Matsufuji said, they need to make it cheaper to compete.

AST said it would sell its cheapest model for $2,920, about the price of an equivalent NEC model without the PC AT option.

Unless customers have set their heart on using IBM-compatible software, Japanese customers will choose manufacturers such as NEC with a strong reputation for quality, observers say. AST’s choice of distributors also belies its intent to grab a 3% to 5% share of the Japanese market. Okura and Co. is a trading company with most of its sales in machinery and metals. Its distribution channels are primarily through dealers. Proside Corp. is a relatively small entrepreneurial dealer.

AST’s third distributor, Swire Trastech, deals primarily with foreign companies in Japan and research institutes. None of the distributors have strong channels among retail stores.

Steve Lair, a vice president at Dataquest, a San Jose market research firm, said he would be surprised if AST could garner more than 1% of the Japanese personal computer market, compared to 50% for NEC.

“This is a real tough market,” he said. “(AST) is a salmon swimming upstream.”

It is also far from clear whether AST’s new distributors can bring the marketing muscle to compete with such powerhouses as NEC and Epson without a price advantage. Epson is the largest Japanese maker to sell a NEC-compatible machine.

Skeptics here said the new computer would sell primarily to the small number of users that absolutely must deal with both Japanese and English word processing.

The company recognizes these weaknesses and plans to gradually build up its name and presence in the Japanese market over several years, according to a spokeswoman for AST Japan. As AST’s sales expand, she said, the distributors will also develop new retail channels.

AST also announced Thursday that it sold more than 70 high-performance computers to the Tokyo Grain Exchange for about $1 million. The workstations will be used by traders on the commodity exchange.

Times staff writer Dean Takahashi contributed to this report.