Industry\)Q Trade Summary Computers, Peripherals, and Computer Components USITC Publication 2821 October 1994 OFFICE OF INDUSTRIES U.S. International Trade Commission Washington, DC 20436 UNITED STATES INTERNATIONAL TRADE COMMISSION COMMISSIONERS Peter S. Watson, Chairman Janet A. Nuzum, Vice Chairman David B. Rohr Don E. Newquist Carol T. Crawford Lynn M. Bragg Robert A. Rogowsky Director of Operations Vern Simpson Director of Industries This report was prepared principally by Julie Throne Services and Electronics Division Electronic Technology and Equipment Branch Address all communications to Secretary to the Commission United States International Trade Commission Washington, DC 20436 PREFACE In 1991 the United States International Trade Commission initiated its current Industry and Trade Summary series of informational reports on the thousands of products imported into and exported from the United States. Each summary addresses a different commodity/industry area and contains information on product uses, U.S. and foreign producers, and customs treatment. Also included is an analysis of the basic factors affecting trends in consumption, production, and trade of the commodity, as well as those bearing on the competitiveness of U.S. industries in domestic and foreign markets. l This report on computers, peripherals, and computer components covers the period 1989 through 1993 and represents one of approximately 250 to 300 individual reports to be pro­ duced in this series during the first half of the 1990s. Listed below are the individual summary reports published to date on the electronic equipment and technology sector. US/TC publication Publication number date 1itle 2445 January 1992 .......... Television receivers and video monitors 2648 July 1993 ............ Measuring, testing, controlling, and analyzing instruments 2674 September 1993 ....... Medical goods 2708 December 1993 ........ Semiconductors 2730 February 1994 ......... Navigational and surveying instruments 2820 October 1994 Telecommunications equipment 2821 October 1994 Computers, peripherals, and computer components 2822 October 1994 Audio and video recording and reproducing equipment 1 The information and analysis provided in this report are for the purpose of this report only. Nothing in this report should be construed to indicate how the Commission would find in an investiga­ tion conducted under statutory authority covering the same or similar subject matter. CONTENTS Page Preface ............................................................................. Introduction . 1 Types of computers . 1 Types of computer peripherals . 2 Computer components . 3 Significance of products . 3 U.S. Industry Profile . 3 Industry structure . 3 Structure . 3 Vertical integration . 4 Ease of market entry . 4 Employment . 5 Pricing and marketing ........................ , . 5 Research and development . 6 Globalization . 8 Global production and R&D . 8 Global sales . 8 Consumer characteristics and factors affecting demand . 8 Consumers . 8 Downsizing computer platforms . 11 Open systems . 12 Foreign Industry Profile . 12 Japan . 12 Taiwan.......................................................................... 14 Singapore.......................................................... 16 Europe.......................................................................... 17 U.S. Trade Measures . 19 Tariff measures . 19 Nontariff measures . 19 U.S. Government trade-related investigations . 23 Foreign Trade Measures . 23 Tariff measures . 23 Nontariff measures . 25 Japan . 25 Government procurement . 25 Cultural differences.............. 26 Brazil . 26 U.S. Market . 26 Consumption . 26 Production . 27 U.S. Imports . 27 Foreign Markets . 28 Japan . 28 Taiwan . 29 Singapore . 30 European market . 30 U.S. Exports . 31 U.S. Trade Balance . 33 iii CONTENTS-Continued Page Appendices A. Tariff and trade agreement tenns . A-1 B. Glossary of selected technical tenns . B-1 Figures 1. Characteristics of computer market segments, ranked by price . 2 2. Federal computer research funding by agency, 1991-93 . 7 3. Worldwide computer markets, 1993 . 11 4. Computers: percent of the world market by product category, 1989-93 . ..