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It's Now or Never for PC Firms
China's personal computer (PC) makers are bracing for stiff competition this summer amid the encouragement from the chip giant Intel and the slowdown of the world PC market.
"The coming summer season will see the cruelest competition in China's PC history, and we must win out,'' said Yang Weiqiang, general manager of the Shenzhen-based TCL Computer Company.
The company launched its summer campaign last Wednesday with four new computers: HIC (Home Information Centre) 8550, HIC 8250, HIC 8650, and HIC 8850.
An Intel Pentium 1.3G-based HIC 8250 costs 7,998 yuan (US$966), while an HIC 9550 with the same processor and a 15-inch LCD (liquefied crystal display) costs 9,998 yuan (US$1,200), both of which are the lowest priced among similar computers.
Legend, the largest computer merchant in China with more than a third of the market share last year, was even more enthusiastic about the summer market and released seven models on Friday.
The PC giant has cut the price of its Pentium 4 1.3G-based Tianxi II by 2,000 yuan (US$240) to 8,999 (US$1,088) and a Future Pioneer 711 with Pentium 4 1.3G processor and 15-inch LCD monitor is sold for 10,499 yuan (US$1,270).
The other major players, including Founder PC and Acer, will all launch their summer campaigns this week either by promoting new models or cutting prices.
Summer has traditionally been a hot sales season for PC makers, as students get off from school, and demand for computers rises significantly.
"I don't think any player in the sector can afford to be a loser in this season,'' said Chen Jiming, a marketing executive with TCL Computer.
"If they lose, they will not be able to make up the losses, no matter how hard they try in the remaining time of the year,'' Chen added.
It is estimated that sales from July to August make up more than one-third of the annual total.
Intel, which supplies virtually all the processors that Chinese PC makers use, is quite happy with the moves of the computer makers.
"Sales of Pentium 4 processors in summer is critical to our plans this year, and we will give full-scale support to our partners,'' said Charles Shen, an Intel China spokesman.
"We will also start our own promotion campaigns across the country soon,'' he revealed.
Although statistics from the International Data Corporation (IDC) show that PC sales rose more than 40 per cent in recent years, the worldwide recession in technological industries has shifted more and more of the attention of world giants like Dell and Compaq to China.
To retain a large market share and sustained growth, computer vendors have to grasp the opportunity of this golden season.
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