Acer Japan, the subsidiary of Acer Corp in Taiwan is having a hard time selling its computers in Japan: in fiscal 1989 to March, sales were of the order of 1,000 machines a month, but the company’s president admits that since then they have fallen to 200 to 300 a month, and where the company had been looking for turnover of around $1m this financial year, it looks unlikely to reach the target; Acer has priced its products rather high in Japan and consequently customers feel that there is little differentiation with local companies, which means that Acer has little alternative but to compete on price.