Quake signals danger for local ICT markets

Quake signals danger for local ICT markets

Japanese technology brands could potentially suffer, IDC senior analyst says

The Tohoku Pacific Ocean Earthquake, that severely affected north-eastern Japan on March 11, will impact ICT markets in Australia and New Zealand from mid-2011, according to IDC.

The analyst company claims the markets will encounter minor supply restrictions from Japanese technology companies which may impinge on component pricing and economic relations between Japan and Australia.

There has been plenty of scuttlebutt about how badly Japanese technology companies are affected by the earthquake, in particular, power blackouts resulting from the problems with the Fukushima Daiichi nuclear reactor.

IDC senior analyst, Trevor Clarke, said many large Japanese brands may experience losses resulting from the disaster.

However, Clarke is optimistic as “initial research shows many have also come through with minor damage to production facilities and should continue to provide product and components to their supply chains.”

IDC affirmed the biggest challenge surrounding this disaster sat on the vendor and channel side of the market equation, contrasting the natural disasters in Australia and New Zealand that hit end-user spending.

It said channel providers should, when considering long-term options, establish strong communication lines and fall-back positions with other brands.

"These brands straddle a wide range of ICT markets in A/NZ and we expect businesses and consumers to continue to have plenty of buying options," Clarke said.

Supply chains will start to feel the impact in the coming months but IDC advised business geta clear picture of the changing conditions before drawing quick conclusions.

The gravity of the impact is still unclear and actions should be taken depending on the severity as it unfolds.

A clearer scenario can be expected by mid-April.

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Tags IDCJapanTrevor ClarkeTohoku Pacific Ocean earthquakesupply restrictions


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