CGarcia,
True that Compaq did not have a big position in Asia. One of the reasons I bought more of the stock when Asian Flu hit. However, Compaq bought Dec.. Look at the current Compaq dealings with Asia. We are the biggest player in Asia now.
NW
Asia/Pacific PC Market Continues Downward Spiral in Second Quarter, IDC Finds
FRAMINGHAM, Mass., Aug. 18 /PRNewswire/ -- Asia/Pacific PC shipments continued to falter in the second quarter of the year, dropping slightly more than anticipated, according to preliminary data released today by International Data Corporation. Asia/Pacific (Excluding Japan) PC shipments decreased five percent from the same period last year, slightly below IDC's initial forecast of a 1.4 percent drop. With the unrelenting Asian crisis, price sensitivity also continues to maul revenue as witnessed in the 35 percent drop in end-user revenue during the same period. The sharp decline in revenue was caused by many of the same factors as experienced in the first quarter: the popularity of sub $1,000 PCs, the heightened price sensitivity brought forth by the crisis and the expanding role of the PRC and India where average system prices tend to be lower than in more developed markets. Sequentially, the market grew by 11 percent in unit shipments and 1 percent in revenue. But the growth was mainly due to seasonal factors and is not an indication that a turnaround is approaching, said Kitty Fok, IDC Asia/Pacific Senior PC Analyst.
"The Asia/Pacific PC market has yet to hit rock bottom. China has been supporting regional growth, but the Chinese government's clamp down on smuggling PCs into the country is a formidable threat to PC expansion for the remainder of the year. In addition, the precarious Japanese yen threatens another round of currency devaluation throughout the region which would delay the region's rebound considerably," Fok said.
Competitively, the acquisition of Digital enabled Compaq to claim IBM's crown as the region's leading PC vendor. Compaq accounted for nearly 10 percent of regional PC unit shipments in the second quarter. While IBM was bumped to the 2nd place rank, its unit shipments rose 24 percent sequentially which was the greatest sequential rise among the top 5 vendors. Hewlett- Packard maintained its 3rd place rank, but its volumes dropped annually for the first time in years with a 3 percent decline from the same period a year ago. Legend climbed to the 4th rank in the regional market for the first time due to healthy growth in the PRC. Conversely, Acer TI continued to have a difficult time dealing with the currency crisis in Southeast Asia which has been the foundation of its regional business for years. While Acer TI maintained its 5th place position in the market, its volumes were down 31 percent from the year-earlier period. Among other vendors, Samsung remained out of the top 5 positions after dropping out last quarter because of the market slump in Korea. In contrast, Dell continued to produce strong growth, reaching 7th place with unit shipments up 37 percent over the same period a year ago.
Market Highlights
The worst market conditions remained in Southeast Asia and Korea in the second quarter. Indonesia, Thailand and Korea generated the steepest shipment declines from the previous year with decreases of 90 percent, 40 percent and 58 percent, respectively. China remained the region's largest market, accounting for 39 percent of total unit shipments in the second quarter. PC shipments in the PRC increased 28 percent from the year-ago period to reach nearly 1 million units. In addition to the PRC, growth in India was strong in
the second quarter. In fact, India once again produced the greatest annual growth rate in the region, with shipments up 39 percent from the year-ago period. The growth accelerators in India stemmed mainly from strong shipments to the SOHO sector and from the successful performance of Intel's Genuine Intel Dealer program. Finally, Australia continued to be the 2nd largest market in the region after surpassing Korea for the position in the first quarter. Australia helped bolster regional expansion with its 12 percent growth over the year-ago period.
Table 1
AP (Ex. Japan) PC Shipments, Second Quarter 1998 Preliminary Results
(Thousands of Units)
Vendor Q297 Share Q198 Share Q298 Share Q298/ Q298/
Q297 Q198
Compaq(A) 279 10.4% 208 8.8% 249 9.8% (11%) 23%
IBM(A) 211 7.9% 174 7.5% 215 8.4% 2% 24%
HP 146 5.5% 137 5.9% 141 5.5% (3%) 3%
Legend 76 2.8% 102 4.4% 117 4.6% 55% 15%
Acer TI 163 6.1% 112 4.9% 115 4.4% (31%) 1%
Others 1,801 67.3% 1,572 68.4% 1,711 67.2% (5%) 9%
Grand
Total 2,676 100.0% 2,305 100.0% 2,548 100.0% (5%) 11%
Source: International Data Corporation, 1998
NOTE(A): Compaq includes Digital and IBM includes LG IBM
Table 2
AP (Ex. Japan) PC Shipments, Second Quarter 1998 Preliminary Results
(Thousands of Units)
Country Q297 Share Q198 Share Q298 Share Q298/ Q298/
Q297 Q198
Australia 413 15.4% 391 16.9% 462 18.1% 12.0% 18.3%
Hong Kong 96 3.6% 99 4.3% 90 3.5% (6.2%) (9.0%)
India 118 4.4% 200 8.7% 164 6.4% 38.5% (17.9%)
Indonesia 125 4.7% 21 0.9% 12 0.5% (90.2%) (42.1%)
Korea 460 17.2% 281 12.2% 275 10.8% (40.3%) (2.4%)
Malaysia 112 4.2% 64 2.8% 78 3.1% (30.1%) 21.5%
New Zealand 60 2.2% 54 2.3% 62 2.4% 3.3% 15.3%
Philippines 55 2.1% 39 1.7% 37 1.5% (33.0%) (4.1%)
PRC 776 29.0% 806 35.0% 994 39.0% 28.0% 23.2%
Singapore 102 3.8% 82 3.6% 82 3.2% (19.2%) (0.5%)
Taiwan 158 5.9% 152 6.6% 163 6.4% 3.0% 7.4%
Thailand 93 3.5% 42 1.8% 39 1.5% (57.9%) (7.0%)
ROAP 107 4.0% 73 3.2% 90 3.5% (15.8%) 22.6%
Grand
Total 2,676 100.0% 2,305 100.0% 2,548 100.0% (4.8%) 10.5%
Source: International Data Corporation, 1998
These findings stem from IDC's Asia/Pacific AsiaDAT Quarterly PC Tracker. For more information on this service or to purchase any of IDC's Asia/Pacific offerings, please contact Lisa Cosmas at 650-962-6407, by e-mail at lcosmas@idc.com or Lisa Bloom at 508-935-4236, by e-mail at lbloom@idc.com.
IDC Asia/Pacific is a subsidiary of U.S. market research firm International Data Corporation. Data includes aggregate shipments from IDC offices in Australia, New Zealand, Korea, China, Taiwan, Hong Kong, Singapore, Malaysia, Indonesia, Philippines, Thailand, India and the 'Rest of Asia/Pacific' (ROAP).
About IDC
Headquartered in Framingham, Mass., International Data Corporation provides IT market research and consulting to more than 3,900 high-technology customers around the world. With a global network of 375 analysts in more than 40 countries, IDC is the industry's most comprehensive resource on worldwide IT markets, products, vendors, and geographies.
IDC/LINK, an IDC subsidiary, researches and analyzes the home computing market, leading-edge technologies in telecommunications and new media, and the convergence of computing and consumer electronics.
IDC's World Wide Web site ( idc.com ) contains additional company information and recent news releases, and offers full-text searching of recent research.
IDC is a division of International Data Group, the world's leading IT media, research and exposition company.
All product and company names may be trademarks or registered trademarks of their respective holders.
SOURCE IDC
CO: IDC; IDG; IDC/LINK
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