"Mizoguchi said innovative PC models had attracted younger users buying PCs for the first time, but added that replacement demand still accounts for 80 percent of buyers.

'New-style PCs were crucial in lifting PC sales during the (Christmas) season,' Mizoguchi said.

Industry officials say Apple Computer Inc should have sold 120,000 units of the turquoise blue, egg-shaped iMac in the four months since its August launch in Japan.

They estimate Sony's Vaio notebook October-December sales at around 120,000 also.

Analysts say the success of iMac and Vaio notebooks indicate consumers are looking for style and design as well as megahertz and bytes."

The Mac Observer Spin: Well well well, it seems our little Bondi-blue friend brings good cheer every where he goes. Previous reports from Japan have said that many first time buyers, especially women, were turning out in droves to buy the iMac. With the candy colored iMacs coming out in Japan soon, the seemingly universal cute-factor may add even further to iMac sales in Japan. As Steve Jobs said when Apple introduced the new colors at MacWorld San Francisco:

"'What's your favorite color' is going to become one of the most important questions for consumer PC buyers. For most consumers, color is much more important than the megahertz, gigabytes and other gibberish associated with buying a typical PC."

One thing is for sure, the Japanese market is certainly picking up for Apple. 120,000 units sold accounts for some 15% of over all iMac sales for the period. This makes Japan a major market for Apple which would explain even more why Steve Jobs is doing the keynote at MacWorld Expo Tokyo '99.

That and to announce a new product or two.