Fujitsu to raise PC prices amid falling yen

Drop in Japanese currency has pushed the cost of component imports, prompting the Japanese PC maker to jack up prices of their new PC offerings effective July.


Fujitsu plans to raise the domestic prices of its PCs as the Japanese yen drops to a four-year low, pushing the cost of importing components.

The price increase will take effect in July and apply to PC models released in the summer, Fujitsu CFO Kazuhiko Kato told Bloomberg in an interview Sunday. The Japanese PC maker's offerings rely on imported components and software, including Intel chips and Microsoft Windows OS.

Kato added that Fujitsu may also curb discounts on existing product lines.

According to the Bloomberg report, the yen fell to beyond 101 per dollar for the first time since April 2009, as the Japanese government had been taking measures to stem the currency as part of efforts to revive the local economy.

Kato said it was "impossible" to change suppliers as the company also had taken measures to combat a strong yen. To lower costs and reduce the number of products it sells, he said the PC maker plans to increase the use of materials common to multiple models.

Bloomberg noted that Japan accounted for 66 percent of Fujitsu's overall PC overall sales in the year ending March, and the company had forecasted a net income of 45 billion yen (US$455,085) this year after reporting a 72.9 billion yen (US$718,439) loss for the 12 months. The Japanese company in February also cut 5,000 jobs and transferred 4,500 workers to other companies while overhauling its chip business.

According to an IDC report last month, global PC unit shipments fell 14 percent in the first quarter of this year to 76.3 million , its steepest decline since the market researcher started tracking PCs in 1994. In Japan, though, PC shipments met expectations in the first quarter as some economic improvements helped support commercial replacement demand, IDC said.