Notebook Computer Sales Thrive

Nearly 376,000 notebook computers are likely to be sold in China this year, an annual growth of 30.1 per cent, an official with the Ministry of Information Industry predicted.

In the latest report, insiders said development of the notebook computer industry is "fast and steady.''

The report was co-produced by the Computer and Micro-electronics Development and Research Centre of the Ministry of Information Industry (MII) and Beijing CCIDNET Information Technology Co Ltd.

In the first half of this year, notebook sales reached 174,000 units, up 30.8 per cent from the previous year.

Major brands in the domestic market include Toshiba, Compaq, Dell, IBM, Legend, Founder, Acer, and Hewlett Packard.

"Better performance is expected for the rest of the year,'' said Lin Yuanfang, deputy director of the Economic Operation Department of the MII.

Lin attributed the sustained growth of the market partially to price cuts.

Beginning in 1998, notebook computer producers slashed prices for its products as low as 10,000 yuan (US$1,200).

Nevertheless, prices still remained bottlenecked for the development of notebook computers in China, the report indicated.

"It is still a luxury for a household,'' industry experts said.

Fortunately, notebook prices are showing signs of decline, the report said.

Competition between notebook chip makers such as Intel and AMD may help cut costs and shorten development for new chips.

In April, both companies slashed prices of their chips.

Mass production of notebook computers will also contribute to decreasing production costs.

"Increasing market competition among notebook makers is another reason for the price-cut,'' the report said.

Market demand for notebooks is flourishing with growing popularity of mobile telecommunications and mobile Internet access.

Industry insiders said deepening reform of network-based applications and China's impending entry into the World Trade Organization (WTO) will be two major factors for industry development.

Sources from the China National Network Information Centre indicated that by the end of June, Internet users amounted to 16.9 million.

"The bouncing back of the national economy also contributed to the flourishing of the notebook market,'' Lin said.





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