Feeds

Samsung boss warns of Chinese tech spending slow down

Kim Young-ha is worried, but stats tell a different story

Maximizing your infrastructure through virtualization

Samsung’s head honcho in China is reportedly worried that domestic spending on technology products in the People’s Republic is slowing down, fears which if realised could have a significant knock-on effect for the global economy.

Samsung Electronics China CEO, Kim Young-ha, told the FT that the domestic tech market would likely grow by just seven per cent in 2012.

“It is a concern. The situation is not ideal,” he told the paper. “The Chinese government has been implementing austerity measures targeted at the real estate market and that has had an impact [on spending].”

Kim also apparently pointed to poor TV sales during the usually bumper Golden Week holiday at the beginning of May as evidence of a slow down in consumer spending.

The report argues that given Samsung’s broad product portfolio, it should be well placed to offer an accurate assessment of the health of the tech sector.

Whether this is a rather clumsy attempt to urge the government to tone down its austerity measures remains to be seen, but figures from elsewhere seem to paint a rather more optimistic picture of tech spending in China.

IDC figures released last week, for example, reckoned the country would see a surge in consumer tech spending this year of 29.8 per cent, driven by strong demand for smartphones and tablets, with the PRC set to become the biggest IT spender in Asia next year, blowing a massive $173bn (£110bn).

IHS iSuppli, meanwhile, predicted PC sales would jump 13 per cent this year in China.

Even Kim admitted in the report that Samsung’s revenue growth in China this year would hit between 30 and 40 per cent. ®

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.