Feeds

China risks mountain of unsold PCs

Analyst warns of sales drop-off

Build a business case: developing custom apps

China’s domestic PC market is set to go from strength to strength in 2012 with shipments forecast to rise at three times the rate of the global market, although analysts warn there could be trouble ahead.

The China Electronics Research report from market watcher IHS iSuppli claimed that PC shipments in the People’s Republic would reach 83.6 million units in 2012, up 13.1 per cent from the 73.9 million units last year, compared to a rise of just 4.4 per cent globally.

To put this in further perspective, iSuppli claims China will account for just under a quarter of the world’s total shipments of 368 million units and a whopping 63 per cent of all PCs shipped in Asia Pacific this year.

Portable computer shipments will just edge those of desktop PCs, with strong economic growth and unprecedented demand from private enterprises fuelling the impressive stats, the analyst said.

As predicted by Gartner recently, home-grown PC giant Lenovo is in the lead, forecast to ship 29.9 million units domestically this year – one third of China’s domestic PC market.

Following Lenovo are Acer with an 11 per cent market share; Dell (8 per cent); HP (6 per cent); and Asus (6 per cent).

There are no full stats available yet for the growth of China’s export market in 2012 but Taiwanese ODMs including Compal, Foxconn and Pegatron are set to dominate again.

However, shipments do not equal sales and iSuppli’s China analyst Elaine Zhi warned that if customer demand does not keep up, there could be inventory problems ahead.

“I think the sales of domestic PCs will drop off because of reduced consumer demand and changes of market strategy, as well as the economy,” she told The Reg.

“People are more attracted to smartphones and tablets at the moment. Unsold inventory is unavoidable and will be even worse at the end of the year if there is no new policy to boost the market.”

A similar warning shot came from Gartner last week, with research director Ranjit Atwal claiming that in terms of sales into the channel, Lenovo had “massively outgrown the market”.

Acer made just such a misjudgement in 2011 and is only now beginning to recover.

It still remains to be seen whether all the doom-laden prophesies of a Chinese economic crash turn out to be true, although its economy is certainly set to slow down a little.

The only note of real pessimism in the past few months has come from Samsung, whose China CEO, Kim Young-ha, went on record in May complaining the government's austerity measures were hurting consumer demand. ®

Boost IT visibility and business value

More from The Register

next story
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
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
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

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.
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.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?