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Rediff.com  » Business » Asia-Pacific PC sales to grow by 16%

Asia-Pacific PC sales to grow by 16%

Source: PTI
June 11, 2004 15:35 IST
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Shipments of personal computers in Asia-Pacific are expected to increase by 16 per cent year-on-year in 2004 as against the 13.5 per cent growth forecast for worldwide sales.

"Growing exports and high investments in China and other countries should boost growth in Asia-Pacific in 2004 to more than 16 per cent," a study by IDC said.

It said worldwide PC shipments will grow by 13.5 per cent in 2004 to 175 million units as companies update their ageing systems and consumers adopt PCs for digital entertainment. The growth rates will, however, drop in the coming years.

In 2005, growth in PC sales will be at 11 per cent and it will then settle at 8 per cent between 2006-08, the study said.

Worldwide shipments of desktop PCs grew by 13.4 per cent year-on-year in the first quarter of 2004, up from 9.6 per cent in the fourth quarter of 2003, while portable PC growth slowed to 28.5 per cent in the first quarter from more than 35 per cent in the second half of 2003.

The strong growth in desktops, which continue to represent more than 70 per cent of the worldwide PC shipments, helped boost growth expectations for total PC shipments in 2004 by 2.1 per cent to 13.5 per cent, IDC said.

"While there is little doubt that wireless capabilities, falling prices and growing need for mobility have increased demand for notebooks, many buyers remain price-sensitive and continue to evaluate the benefits of mobile computing," said Loren Lovedale, director of IDC's worldwide Quarterly PC Tracker.

"Portable PCs continue to grow much faster than desktops but recent results demonstrate the continuing competitiveness of desktop systems," Lovedale added.

In 2004, rising unit growth and shift towards higher cost configurations are expected to lift shipment value to $194.5 billion, an increase of 9.2 per cent, IDC said.

"Although the refresh cycle this time around is not as distinct as the one that preceded the millennium, we are going through a period of elevated demand. We can expect at least another year of heightened activity," Robert Kay, vice president of Client computing at IDC, said.

In the United States, improving business and persistent consumer demand should sustain shipment growth in double digit during the next two years. Although rising interest rates and consumer debt may limit overall growth, replacement demand and low-cost systems should continue to drive the market.

In Western Europe, rebound in commercial spending and long-awaited refresh cycles should boost shipments by nearly 15 per cent. Continued demand in portable PCs, particularly in consumer segment, will remain a key market driver, IDC said.

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