The PC Market in Asia/Pacific Grew Marginally in Q2 2002, Reports IDC
NORTH SYDNEY – JULY 23, 2002 – IDC's preliminary results of the Asia Pacific PC Market show that the Asia/Pacific (excluding Japan) region reached 5.80 million PC units in Q2 2002. This is a 1.5% increase from Q1 and a 5.4% increase from the same quarter the year before.
Additionally, year-on-year growth rates in almost all countries in the region have turned slightly positive. This is a pronounced improvement from Q1 2002, when only half of the countries in the region were able to post positive year-on-year growth.
Although it is clear that a full recovery is not in our hands yet, the incremental improvements observed in the Asia/Pacific region over the past two quarters give us a glimmer of hope, said Bryan Ma, Research Manager, Personal Systems, IDC Asia/Pacific.
Still, any dose of optimism should be taken in moderation. The market is heavily dependent on the fragile economy, which continues to face formidable challenges.
Many countries entered a seasonal low in Q2, but performance remained respectable nonetheless. In China, government and education projects carried the market 6.6% sequentially in the midst of a lack of corporate purchases and a weeklong Labour holiday. India entered a seasonal corporate purchasing low in Q2, but the market still grew by 5.8% on the back of a good consumer segment and little or no impact from the recent political tension in Kashmir.
Although Korea experienced an 11.1% sequential decline, the market still grew 7.8% year-on-year, with strong purchasing in the manufacturing and finance industries. Hong Kong posted the worst year-on-year performance in the region, with a 23. 9% contraction, but this was primarily because of a large education tender that was completed in the same period one year ago. In the end, the Hong Kong market still grew 1.3% sequentially as heavy consumer promotions made up for the lack of corporate, government, and education purchases.
Q2 Market and Vendor Highlights
What is noteworthy in this quarter is the frenzy surrounding the 2002 FIFA World Cup, which detracted from consumer PC purchases in Q2 as fans were enthralled in the games during the month of June. This phenomenon was particularly felt in the Asian region because the games were held in Japan and Korea, allowing for fans in most other countries in the Asia/Pacific region to watch games during afternoon and early evening hours that could have otherwise been spent shopping.
Legend maintained its position as the leading vendor in the region in Q2, with 16% sequential growth and 13% year-on-year expansion. In Q2, the HP-Compaq merger was sealed, thus creating the second largest PC vendor in the Asia/Pacific(excluding Japan) region behind Legend. A significant slowdown in Korea impacted Samsung's performance, allowing IBM to pass by. Dell grew slightly as solid gains in China made up for losses in Singapore and Malaysia.
Although slightly positive year-on-year growth from most countries in the region is encouraging, corporate PC purchases were generally slow while the economic recovery remained limited.
Furthermore, the PC replacement cycle expected to begin this year will likely be delayed as some corporations and users opt for upgrading existing PCs rather than purchasing new systems. As such, IDC cautiously expects the Asia/Pacific (excluding Japan) region to grow by less than 9% in Q3, with the strongest growth coming from the ever-important Chinese and Indian PC markets. Yet should the economy's recovery be further delayed, the PC market rebound could similarly be pushed back.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and eBusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts local and worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organisations, eBusiness companies and the financial community. Additional information can be found at www.idc.com.au