IDC: Don't view China as one entity

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
China's population differs in education, buying power and spending habits so it would be a mistake for hardware vendors to regard the country as one undivided market. "Don't generalise the entire country," said Bryan Ma, IDC Asia-Pacific research manager (Personal Systems). Hardware vendors which understand how various regions differ can tailor strategies to meet each market's need, Ma said. Large corporations based in China's northern and eastern regions have helped Intel-based computers grab the top spot but in the more price-sensitive and poorer west and central regions, do-it-yourself "white boxes" with cheaper AMD processors are popular, he told participants in Singapore on Friday at the research firm's yearly conference, entitled "Directions 2002: IT Leadership for the Rebound." In the wealthy south, monthly incomes are $110 (£76), compared with just $65 in the poorest west. Southern PC buyers are heavily influenced by trends in neighboring Hong Kong, favouring cool designs and more powerful options. Vendors should also note that the Chinese government is encouraging resettlement from the east and north to the sparsely populated western regions, Ma said. Overall, the China market for PC sales will continue to grow, driven by its huge population, increased investments in IT from the Chinese government and the private sector, as well as education programmes. Shipments will reach 13 million units next year and increase to about 21 million by 2006, Ma said, but was quick to warn that the boom can't be sustained. "While the growth in PC shipments is forecasted to hit 25 percent next year, by 2006, the growth rate will slow to 15 percent due to the effects of market maturity and component supply instability," he said. Worse news for Western PC makers is the continued success of homegrown brands such as Legend, Tongfang and Founder. In 2001, all non-domestic brands but one either lost market share or saw flat growth in China. The sole exception was Dell, whose share grew from 4 to 5 percent. Chinese brands accounted for 22 percent of the market, Ma said, with Legend the leader among all brands, Western or local, claiming 13 percent of the pie. Western PC makers will have to bank on services or leverage on relationships with China-based US firms to grow, especially when the margins for hardware sales are so thin, he added. But with Legend beginning to offer services as well, the US brands won't have an easy time of it, he said.
See the Hardware News Section for the latest update on everything from MP3 players and PDAs to supercomputing. Have your say instantly, and see what others have said. Go to the ZDNet news forum. Let the editors know what you think in the Mailroom.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

TerryRK

Well it seems there is something a number of us agree on. Why is the Ubuntu Unity launcher so ugly? I thought perhaps it was something to do with...

3 hours ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
Freebies202

Duplicate comments are not made intentionally. Its very good to know that now you are keeping check on this problem because sometimes a commenter...

12 hours ago by Freebies202 on Microsoft fixes blog comments, speeds up blogs with open source
kevinmchapman

"the very significant number of users" and "many (most) of us" - you have no evidence for these statements. It is a fact that most users are saying...

20 hours ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
Marg Menzies Harrison

Another grammar faux pas is the improper use of "you". When sitting down down in a restaurant, for example, I get cringe when the waitress...

22 hours ago by Marg Menzies Harrison via Facebook on 10 flagrant grammar mistakes that make you look stupid
zdnetukuser

And NOW, folks, for Canonical's next trick... Kubuntu is late. Here's a pencil. Draw your own conclusions. cf.:...

22 hours ago by zdnetukuser on Linux Minterface
Moley

@kevinmchapman. The discussion here reflects the very significant number of users who really do like the traditional menu system and who wish to...

1 day ago by Moley on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

Er, no... It is an efficient means of finding the application/file/setting you need in one place. The icons are a simply a fallback for when you...

1 day ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

Isn't the provision of a text based search an admission by the developers that the mass of icons approach does not work? I don't need to use a...

1 day ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

"Unity and GNOME 3 both abandon the old text-based cascading menus in favour of a graphical icon-driven system." Point truly missed. Both use a...

1 day ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

whs001 - Thank you, I'm glad you liked the article. I absolutely agree with you on your first point. I should perhaps have made it clearer that...

1 day ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
Dennis Nilsson

If we allow corporate interest to dictate the way our government circumvents due process against foreign entities then we should accept the same...

1 day ago by Dennis Nilsson via Facebook on ACTA stumbles in Germany
GHar123

I totally dislike pirating of works, I fear that artists will be deterred from creating works if they think that they are going to get ripped off....

1 day ago by GHar123 on ACTA stumbles in Germany
JCB33

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

2 days ago by JCB33 on ACTA stumbles in Germany
Moley

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

2 days ago by Moley on A tale of two distros: Ubuntu and Linux Mint
greycynic

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

2 days ago by greycynic on Ten flawed products that derail productivity
GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

2 days ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

2 days ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint
bdantas

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

2 days ago by bdantas on A tale of two distros: Ubuntu and Linux Mint
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

2 days ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

2 days ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material