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AST Research, the Irvine personal computer maker, launched a David-and-Goliath battle with NEC Corp. in its own back yard by unveiling a clone of the Japanese giant's best-selling personal computer.
The bold move is the first attempt by a U.S. computer maker to challenge NEC's dominance in the Japanese PC market, where NEC's machines have become a de facto standard in much the same way as International Business Machines Corp. has established the traditional standards in the United States.
U.S. Commerce Department officials, who accompanied AST officials at the unveiling, praised the venture as a good test of Japan's willingness to open its market to U.S. products. The announcement follows last week's approval of a sweeping U.S.-Japan trade agreement aimed at reducing the $49-billion U.S. trade deficit with Japan and opening the Japanese market to more imports.
Safi Qureshey, AST's president and chief executive, said AST's computer "represents a milestone in U.S.-Japanese trade relations."
AST said it will sell its new computer in Japan at lower prices than comparable offerings from Tokyo-based NEC.
Qureshey said the move "shows the determination of an American computer company to explore overseas markets such as Japan." U.S. firms have managed to capture only a small fraction of the $5.6-billion Japanese PC market. "It will also test Japanese willingness to look at products from outside its borders."
IBM and Apple Computer Inc. have made forays into the Japanese market with limited success. IBM has carved out a 7% market share, while Apple-which sells a Japanese-language version of its Macintosh machine-has almost nothing. AST, however, will be the first U.S. company to directly challenge NEC with a computer that mimics NEC's machines...