February 14, 2000
Asia-Pacific PC Shipments
Reach Record After Slump
By CONNIE LING
THE WALL STREET JOURNAL INTERACTIVE EDITION
HONG KONG -- Personal-computer shipments in Asia reached a record
in 1999, according to market-research firm International Data Corp. Asia
Pacific.
For the year, a total of 14.1 million PCs were shipped in the Asia-Pacific
region excluding Japan, a 35% increase from 1998. Japan's PC market
grew 37% last year to a record 10.8 million units. By comparison, U.S.
shipments rose 24% this past year from a year earlier, IDC numbers show.
A rebounding economy throughout the Asia region is the main reason for
the strong PC sales last year, said Dane Anderson, regional PC analyst for
IDC. With the economic recovery came higher consumer and business
confidence, stronger spending power as well as stronger local currencies,
which all helped boost PC sales, he added. "We can say that pretty much
all of Asia has recovered," he said.
The region-wide economic crisis had stalled the growth of Asia's PC
market in 1998, with a slight decline in total shipments from the previous
year -- while the rest of the world continued to grow. The PC shipment
total for Asia-Pacific outside Japan in 1998 was 10.47 million, compared
with 1997's 10.54 million.
The impressive growth in the region last year is also partly fueled by the
increasing popularity of the Internet and falling PC prices, noted Mr.
Anderson. He predicted these two factors would be the main drivers for
growth in the region's PC sales in 2000.
Markets leading the growth last year were the ones most battered by the
economic crisis that started in mid-1997. South Korea, for example, saw
the PC shipment total grow 79% to 2.2 million in 1999 from 1.2 million in
1998. Indonesia, which was battered by the crisis, more than tripled its PC
shipments last year, reaching 279,000 units, compared with 1998's 75,000
units. (Indonesia suffered a 81% drop in PC shipments in 1998 from the
year before.)
However, two markets that offer most potential in the region are China and
India, thanks to their sheer size and extremely low penetration. PC
shipments to China last year, at 4.9 million units, accounted for more than
one third of the total in Asia Pacific outside Japan. China also recorded a
year-on-year PC shipment growth of 26%.
While India isn't among the biggest markets for PCs in the region yet -- it
came after China, South Korea and Australia --- it has shown healthy
growth in the past year. PC shipments to India grew 42% in 1999 to 1.1
million units, according to IDC. The low PC penetration rate -- under 5%
-- in these markets also allows plenty of room for growth, Mr. Anderson
said.
International Business Machines Corp. was the No. 1 PC vendor in
Asia-Pacific outside Japan last year, with a 8.4% market share, compared
with 1998's 8.1% share. Compaq Computer Corp., which had the top
spot in 1998, slipped to second place with a 7.3% market share. China's
Legend Holdings Ltd., which was the biggest PC seller in the region in the
third quarter of 1999, ended the year in third place with a 7.1% market
share.
"Legend will be a very strong competitor for the top spot this year,"
predicted Mr. Anderson. Although Legend's market is very much limited to
China so far, its leading position in the Chinese market will be of great help
as it vies for the region's top PC vendor this year, he added.
Record Shipments
PC shipments in Asia Pacific outside Japan in 1999.
1999
1998
% change
Australia
1.9 million
1.7 million
14.2%
China
4.9 million
3.9 million
25.6%
Hong Kong
520,000
406,000
28.1%
India
1.1 million
776,000
42%
Indonesia
279,000
75,000
273%
Malaysia
512,000
395,000
30%
New Zealand
302,000
263,000
15%
Philippines
206,000
164,000
26%
Singapore
427,000
333,000
28%
South Korea
2.2 million
1.2 million
79%
Taiwan
1.1 million
684,000
55%
Thailand
301,000
184,000
63%
Vietnam
105,000
94,000
12%
Rest of region
265,000
249,000
6.4%
Total, (Asia-Pacific excluding
Japan)
14.1 million
10.5 million
35%
Japan
10.8 million
7.9 million
37%
Source: IDC Asia Pacific |
