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Saturday, 19 January 2013 04:56

APAC PC market contracts, ‘muted’ growth prospects ahead

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Last year saw the Asia Pacific market, excluding Japan, for PC sales record a full-year contraction for the first time, and the outlook for the coming years doesn’t look promising, with one global analyst predicting growth in the region’s PC market will remain ‘muted’.

In its latest market forecast for the Asia Pacific region, analysts’ IDC say that preliminary results show that the PC market declined two percent (2%) in full year 2012 to reach 121 million units, after ongoing weakness in the global economy finally caught up with the region, affecting demand across both consumer and commercial segments.

According to Avinash K. Sundaram, Senior Analyst for Client Devices Research at IDC, mature markets in the region were impacted by distractions from smartphones and tablets as well, further hurting PC shipments as a result.

In the fourth quarter of 2012, the market came in four percent (4%) below IDC's initial forecasts with a five percent (5%) year-on-year decline, as channels across the region remained “distracted with clearing out existing Windows 7 inventory before bringing in new Windows 8 stocks.”

"Initiatives such as Ultrabooks and Windows 8 haven't reinvigorated the PC market as much as the industry had hoped," Sundaram said.

"In light of this softness, IDC expects growth to remain muted in the upcoming years. However, we also must not forget that this is still a more than US$60 billion market in the Asia/Pacific (excluding Japan) region alone."

IDC reports that Lenovo remained in the lead in 2012 as it continued to expand beyond China in the region, making particularly strong strides in India.

Sundaram says that internal re-organisation activities kept HP busy for much of the year, though its recent efforts at regaining partner confidence helped the vendor arrest some of the decline.

“Dell, meanwhile, made a strategic choice to shift its focus towards higher valued products. ASUS persisted with its strategy of targeting lower tier cities in emerging markets with entry-level SKUs to steadily gain ground across the region.”

Asia Pacific (ex. Japan) PC shipments by vendor, 2012 (Preliminary) vs 2011:

Rank

Vendor

2012

Market Share

2011

Market Share

Year-on-Year Unit Growth

1

Lenovo

24.6%

21.8%

11%

2

Acer

10.1%

11.1%

-11%

3

HP

8.9%

9.6%

-8%

4

Dell

8.7%

10.0%

-15%

5

ASUS

7.5%

6.2%

18%

Others

40.2%

41.3%

-4%

Total

100.0%

100.0%

-2%

Source: IDC, January 2013


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Peter Dinham

Peter Dinham - retired and is a "volunteer" writer for iTWire. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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