To: jbn3 who wrote (49223 ) 6/28/1998 11:54:00 AM From: Mohan Marette Read Replies (1) | Respond to of 176387
Dataquest Reports Strong Shift in Asia/Pacific PC Shipments to PC Stores. 3, here is an interesting bit of news from Datatquest. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++First Quarter 1998 PC Store Shipments Grow by 53 Percent in Slow PC Market Hong Kong, June 15, 1998- Despite the significant slowdown in personal computer shipment growth in the Asia/Pacific region, first quarter 1998 PC shipments through the region's PC stores increased by 53 percent over the same period last year, according to Dataquest, a unit of Gartner Group Inc. (NASDAQ: GART). PC shipments through PC stores were just below 496,000 units for the first three months of 1998. PC superstores in Asia/Pacific recorded the second-highest year-on-year growth in PC volume by channel group, with 24 percent more systems shipping through PC superstores in the first quarter of 1998 than in the same period last year. The region's total PC market shipments grew by 7.5 percent during this period. One of the market pressures resulting from the regional economic crisis is the overall demand shift to a higher proportion of lower-end systems. The home and small business sectors have registered slightly higher demand growth than other end-user segments. China is the leading contributor to the growth in PC retail shipments in Asia/Pacific, with an 88 percent increase in home market PC volume over the first quarter of 1997. China accounted for 28 percent of the first quarter 1998 PC volume through PC stores in Asia/Pacific. "The strong growth in regional demand for PCs from PC store retailers is a direct reflection of the degree of home and small office consumption in markets like China," said Lane Leskela, senior industry analyst for Dataquest's Asia/Pacific PC and Printer Distribution Channels program. Channel consolidation is an identifiable trend in the region as the PC market slows. The five channel groups contributing the highest PC volumes in Asia/Pacific were responsible for 95 percent of the region's shipments in the first quarter of 1998. Dealers continued to lead in PC volume with 33 percent of all first quarter shipments, followed by PC stores with 28 percent, direct sales forces contributing 15 percent, value-added resellers with 13 percent, and direct retailers accounting for 11 percent. Among the highest-volume PC channels, direct sales forces recorded the greatest decline in shipments in this period, with 12 percent fewer orders in the first quarter of 1998 than in the same period last year. "With economic hardship reinforcing the demand shift to lower-end deskbound PCs in 1998, Dataquest expects the retail channels, as a group, to account for about 40 percent of all shipments in Asia/Pacific this year," said Mr. Leskela. "Dataquest anticipates that declining interest in the slim margin from box-moving activity among value-added resellers will see the PC volume through VARs decline to about 10 percent of this market by the end of 1998." [Dataquest maintains direct local operations in Japan and seven countries in the Asia/Pacific region-Australia, Hong Kong, Indonesia, Korea, Singapore, Taiwan, and Thailand-and has research affiliates in China, India, and New Zealand.