Mar 10th (Bloomberg)
China's computer imports fell for the first time last year . . ..
Analysts said the fall im imports, down 39.2% to $2.69 billion last year, reflected increasing market share by domestic PC makers which enjoy lower costs and better distribution networks.
Tough competition for IBM, Dell.
"Sales of personal computers in China rose 14 percent to $4.9 billion in 1998, a sharp slowdown from the 32 percent sales growth in 1997, said Kitty Fok, Hong Kong-based research manager for International Data Corp. . . .."
Fok predicted a slowdown in pc growth in China this year to 25% and revenues increasing about 22%.
"Slower growth overall isn't the only challenge facing foreign makers. Foreign-branded computers, including both imports and local production, took a smaller share of the Chinese market last year, representing 39 percent of sales compared to 48 percent in 1997, Fok said."
"Local companies' technology has improved dramatically, she said, adding, 'They have the back-up from the government, wider sales channels and lower costs.' "
Interesting. According to China gov't sources (Mar 23rd), they endorse the idea that growth will slow to 25% in units for 1999 and that domestically-made units accounted for 72% of sales last year.
"Zhang said competition in China's PC market will intensify this year as more producers of home appliances try to enter the industry."
Fascinating. Home appliance makers. Maybe the Merrill analyst has something about competition from that area. |
