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Tech Channel Index Reports Technology Sales In Japan Drop Following Recent Disasters

Mar 31, 2011

Redwood City, CA – March 31, 2011Tech Channel Index (TCI) reported today that channel sales in Japan for technology products from major US manufacturers fell by an estimated 35% following the March 11 catastrophe. Channel inventories for finished goods, not including components, remain slightly low but well within Japan’s normal range.

In the wake of the tragic events in Japan, there are wide speculations on the earthquake’s impact on commercial activity. The Japan TCI Sales Index, a weekly measure of technology channel sales, dropped from an average of 128 (seasonally adjusted) for the four week period before March 11, down to 83 for the nine days following the initial disaster. See the chart below for details.

TCI Japan Sales

April and May are traditionally important for the Japanese technology channel, just slightly behind the end of year period. TCI data indicates that Japan, on average, represents 3 to 4% of export sales for major US-based technology manufacturers.

Visit the TCI Momentum Index for up-to-date trends in technology channel sales. Additionally, get ongoing channel updates by following TCI on Twitter at #ZymeTCI.