APAC PC market growth spearheaded by China

Gordon Peters
Tuesday, 06 July 2010 14:02

IT Industry - Market

The Asia Pacific PC market is forecast to grow 20.3 percent this year to reach 114.6 million unit shipments, with spending on PCs in the region tipped to grow by 12.4 percent compared to a meagre 2.9 percent in 2009 due to a sharper decline in average selling prices for PCs last year. In Australia, where growth will be strongest in the business sector, PC shipments are expected to reach more than 5.3 million, up 13.5 percent over 2009.

According to Gartner's latest report, in 2009 PC unit growth was spearheaded by China and the South Asian markets, with China taking 59 percent of all PCs shipped in the region, up from 54 percent in 2008. And, Gartner says that in 2010, government stimulus programs, including stimulation of domestic consumption, helped to mitigate the adverse effect of the US and European recessions on these export-oriented economies.

Gartner expects China to represent 60 percent of all PCs shipped in Asia Pacific and 19 percent of PC shipments worldwide in 2010, and Lillian Tay, principal research analyst at Gartner, says that 'while overall growth in Asia Pacific was strong in 2009, at a country level India and the more mature markets with high PC penetration exhibited weak PC shipments.'

According to said Tay, however, 'the improving worldwide economy should lead to better confidence to invest in 2010, especially in Taiwan, South Korea and Singapore.  Similarly in India, PC buyers are now more confident to spend, with employment on the upswing.'

Gartner forecasts that between 2009 and 2014, the Asia Pacific PC market will register a compound average growth rate (CAGR) of 15.7 percent.  The research firm also says that emerging PC markets will lead the growth, particularly China and India, and that South Asian markets such as Indonesia, the Philippines and Vietnam are also expected to perform strongly.

'In the mature PC markets, we expect stronger growth for 2010 and 2011 as PC replacements gain momentum. This reflects an expectation of increased IT budgets and adoption of Windows 7 by organisations replacing PCs that are beyond their useful life,' Tay said.

'Mobile-for-desk-based PC substitution continues unabated and first-time PC buyers are increasingly turning to mobile PCs.  Mobile PC units will grow 35.2 percent in 2010 reaching 53.2 million. In 2011, a milestone will be reached where mobile PC shipments will take 51 percent share of all PCs shipped in Asia Pacific.'

Gartner predicts overall Asia Pacific desk-based PC unit shipments will increase 9.9 percent to 61.4 million units in 2010, largely driven by the 'success of a rural PC program in China, where 70 percent to 80 percent of PCs shipped are desk-based PCs,' and in other markets it will be driven by the replacement of aged desk-based PCs.

According to Gartner, in more mature markets, including Australia, Taiwan, South Korea, New Zealand, Hong Kong and Singapore, business will be the biggest growth area in 2010 due to PC replacements that were held off in the past 18 months.

For Australia, Gartner says PC shipments are expected to reach more than 5.3 million, up 13.5 percent over 2009, compared to last year's growth rate of only 0.3 percent. In New Zealand, more than 703,000 PCs are forecast to be shipped in 2010, up 7.9 percent over 2009 when the market declined by 11.3 percent.

And, Gartner says mobile PC growth will continue to be strong as more desk-based PCs are replaced by mobile PCs due to the need for mobility and flexibility in working anywhere.  Desk-based PC growth will mainly be sustained by government and education, as well as areas of business.  The professional market for desk-based PCs will grow slightly in 2010 and 2011 and decrease from then onward.

For the home market, according to Gartner, the desk-based PC remains popular with gamers and buyers who look for flexibility in configuration and performance.  'Demand for mini-notebooks is expected to taper off in these markets from 2010, but will remain attractive to students where the low price fits the budget.  Mini-notebooks will contribute increasingly less growth over the period as they face increasing competition from other value-priced better performance mobile PCs and new devices like Apple's iPad.'