Asia/Pacific IT Spending Will Rebound by 2001, According to IDC
PR Newswire - February 18, 1998 09:38
%CPR %MLM %ECO V%PRN P%PRN
New Forecasts Released During IDC Executive Telebriefing,
"Asia/Pacific Meltdown: Impact on IT"
FRAMINGHAM, Mass., Feb. 18 /PRNewswire/ -- As the Asia/Pacific region
continues to reel from the economic crisis that has been unfolding, IDC
Asia/Pacific has stepped forward and forecast recovery over the next two to
three years. Although IDC's revised forecasts anticipate a three percent
decline in information technology (IT) spending for 1998 in Asia/Pacific,
excluding Japan, IDC expects a strong rebound resulting in a 16 percent
compound annual growth rate in IT spending from 1998-2002.
"Don't count the Asia/Pacific region out," said Philippe de Marcillac,
senior vice president, Worldwide Research. "Although the market will
experience a downturn this year, the long-term outlook is still very positive.
Today's crisis will create a stronger, more stable Asian IT market. The
demographics remain well-poised for strong growth and the spending patterns in
Asian markets dictate their preference for the latest and greatest technology
whenever possible."
IDC presented its most current forecasts during a recent client
telebriefing. As a result of the severe currency devaluations, IDC now
anticipates a decrease of 26 percent (in fluctuating U.S. dollars) in market
value for 1997 to 1998 in ASEAN (Malaysia, Thailand, Indonesia, etc.). This
contrasts with the earlier forecast of 16 percent growth issued before the
crisis erupted. The Korean market is experiencing a similar change in
forecasts. IDC projects the markets in Australia and New Zealand will remain
relatively unaffected. Where IDC expects to see strong growth continue is in
India and China.
"All the forecasts are dependent upon a stabilization of local
currencies," said Lisa Cosmas, senior analyst, Asia/Pacific Research. "If the
currency crisis were to spread to China and Hong Kong, then the entire outlook
would be altered, most assuredly for the worse."
Despite the bleak reports, the currency crisis could prove advantageous to
companies wanting to expand their presence in Asia. "Vendors should continue
to invest in the region, but must tailor their plans to the new market
realities. Now is the time to review strategies regarding mergers or
acquisitions in Asia," said Cosmas. "In addition to the lower cost of
investing in manufacturing facilities or channel partners, labor costs have
fallen and people will become more anxious for work if their economic
situations continue to worsen."
Total IT Market Growth in U.S. Dollars (fluctuating exchange rates)
Aust/New Zealand GCH* ASEAN Korea RoAP
98/97
(7/97 Forecast) 13% 26% 17% 8% 20%
98/97
(2/98 Forecast) 14% 16% -26% -34% 7%
Greater China: Hong Kong, PRC, Taiwan
Source: International Data Corporation , February 1998
Additional information from the telebriefing will be available in an
upcoming IDC bulletin, Economic Crisis in Asia: Effect on IT Markets. For
additional information, please contact Cheryl Toffel at 800-343-4952.
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 300 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
IDC is owned by International Data Group (IDG), the world's leading IT
media and research company.
All product and company names may be trademarks or registered trademarks
of their respective holders.
SOURCE International Data Corporation
/CONTACT: Philippe de Marcillac, 508-935-4222,
pdemarcillac@idcresearch.com or Lisa Cosmas, 650-962-6407,
lcosmas@idcresearch.com or Lisa Bloom, 508-935-4236, lbloom@idcresearch.com
all of IDC/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 113987/
/Web site: idcresearch.com |
