Asian PC market slows, falls five percent

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China’s meteoric economic growth levels off

PC sales in the Asia Pacific region have fallen, with vendors slashing prices as China’s economy slows.

Figures released by the International Data Corporation (IDC) show that sales have declined five percent year on year in the region during the third quarter.

Though growth from the previous quarter amounted to 4 percent, shipments were below the level forecast by analysts. The downturn is said to be due to the effects of “sluggish” economies across the region, which excludes Japan.

In China vendors relied on aggressive price cuts and promotions to help shift PCs.  This meant that some vendors were able to advance their market position, though Acer, HP and Dell all lost market share to Lenovo and Asus.

Lenovo, which is the world’s biggest PC vendor depending on which analyst company you ask, extended its lead in the Asian Pacific market, accounting for a 25.3 percent market share.

Lenovo saw a nine percent rise in its shipments from the previous year, though many of the other leading brands saw close to double digit declines.

However, Lenovo’s gains were not enough to make up for a difficult market, resulting in the overall five percent decline, meaning that even greater importance is now being placed on the imminent release of Windows 8.

“With 2012 having been quiet so far, October 26 will carry a lot of expectations, not just for Microsoft but for all PC vendors who are anxious to see the new OS deliver on its promise of fueling another momentum in the PC market,” says Handoko Andi, senior market analyst for Client Devices at IDC.

He said that channel players in the Asian markets have been avidly waiting the release of the new Windows OS, though it is unlikely to solve long term problems with PC sales.

“The good thing is that channels have been anticipating the arrival of Windows 8, which will help shipments in Q4 2012.

“However, 2013 will continue to be a challenge for PC industry vendors as they still need to jockey for consumer mindshare in a rapidly expanding variety of device choices.”

It is likely that the economic situation will continue for some while. According to the Guardian western firms are preparing for slower growth in China, as the economic powerhouses meteoric rise levels off.

Growth amount to 7.4 percent in the third quarter, the seventh consecutive quarter of slower growth. It is likely that growth in the country will continue to stay around the 7.5 percent mark.


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