Asia’s PC Purchases Generally Unaffected by US Slowdown: IDC

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PUBLISHED ON April 22, 2008 AT 7:06 PM

Singapore and Hong Kong, April 21, 2008 – IDC’s preliminary results show that the Asia/Pacific (excluding Japan) PC market grew 19% year-on-year to 17 million units in 1Q08. This was 2% ahead of forecasts, with portable PCs being the primary contributor. Nearly every country posted double-digit sequential growth in this form factor, allowing total portable PCs to grow 54% year on year. Lenovo remained the top PC vendor in the region despite the seasonal Lunar New Year slowdown.

”Despite concerns about the US economic slowdown rippling through to other parts of the world, the PC market in Asia continued to steam ahead in the first quarter,” said Bryan Ma, Director of Asia/Pacific Personal Systems Research at IDC. ”That doesn’t mean that Asia is in the clear though; any further tightening in the US may negatively impact a number of export-heavy markets in the region later in the year. But for now, IDC believes that the Asia/Pacific PC market is on track for 17% growth in 2008, especially if portable PCs continue their relentless push into the market.”

Indeed, portable PCs beat forecasts in China as well as in many Southeast Asian countries as vendor efforts in promoting to consumers intensified, particularly in Singapore and Thailand. In addition, many vendors were able to import units into Indonesia despite the ongoing customs issues there.

“As predicted, the IT Show in Singapore produced stellar results,” said Reuben Tan, Senior Manager of Asia/Pacific Personal Systems Research at IDC. “But even more activity came from the retail channels and student purchases, thus pushing the Singapore PC market to 15% year-on-year growth. Commercial activity was less vibrant, but at least the market can breath a sigh of relief going forward that the government’s Standard Operating Environment tender has finally been awarded.”

Kathy Sin, Research Manager of Asia/Pacific Personal Systems Research at IDC, said, “Hong Kong’s PC market came in close to expectations this quarter despite the flu outbreak in March. As long as the US economy does not pinch the local economy too much, portable PCs should continue to push the market ahead, especially when university student buying kicks in later this year.”

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