Feeds

Samsung boss warns of Chinese tech spending slow down

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

Gartner critical capabilities for enterprise endpoint backup

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 essential guide to IT transformation

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.