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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (490)	1/6/1998 5:41:00 AM
From: Stitch	Read Replies (2) \| Respond to of 9980

To All, More news that does not surprise re PC spending: asian pc market gloomy January 5, 1998 SINGAPORE, Newsbytes via Individual Inc. : The PC scene in Asia is not rosy. The recent currency turmoil and worsening economic climate has taken a toll on the industry, spelling gloomy times ahead for 1998 and possibly curtailing the growth of Internet usage in the region, according to International Data Corp. (IDC). IDC painted a grim picture, lowering its PC shipment forecast numbers for South East Asia, which now stands at 410,000 unit shipments for the fourth quarter of 1997, down from an earlier figure of over 505,000 units. "Growth will primarily be inhibited by the currency devaluations in Korea and South East Asia," said Dane Anderson, manager of IDC's Asia/Pacific PC research. South East Asia in IDC classification refers to Singapore, the Philippines, Malaysia, Indonesia, and Thailand. Due to the economic crisis in Korea, IDC Asia/Pacific has revised the country's fourth quarter results from 577,000 unit shipments to under 495,000 unit shipments. The overall Asia/Pacific (excluding Japan) fourth quarter PC shipment forecast was lowered from 2.97 million to 2.82 million units. The regional forecast for the entire year was only marginally affected due to healthy growth in the first three quarters and strong growth in China and India. However, regional PC growth in 1998 is expected to be harder hit. "As Asian economies take steps to rehabilitate, it will take time to rebuild confidence and credibility in their financial systems," Anderson said. "As the economy remains weak, consumer spending on PCs will be lessened. " The forecast for market expansion is now lowered from 21 percent to 16 percent. Meanwhile, the global PC market is expected to fare better. With strong numbers in the regions outside of Asia, IDC is forecasting 15 percent overall growth. The US market will be particularly strong, coming in at 21 percent growth for the fourth quarter of 1997 and a projected 17 percent growth for 1998, the latter figure outpacing the worldwide number of 13.5 percent. The situation in the US is helped by a strong economy and a booming market for low-cost consumer PCs.