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China's Portable PC Market: IBM Outshines Legend
In the first quarter of this year IBM ranked first on China's notebook computer market by a 22.4 percent market share, while Legend was forced into the second place.
IBM grasps first place againOnce Number One in domestic PD sales, Legend was again elbowed aside by IBM. Compared with that of last year, foreign makes as IBM, DELL have nibbled at market shares of domestic companies as Legend and Founder. The "peaceful coexistence" between foreign and domestic brands has broken down.
¡°Why, we were overtaken even before we realize that". President of Legend Yang Yuanqing attributed it to two reasons. One is external, for foreign brands have shifted much more attention to Chinese market since global sales slowed down. The other is Legend's personnel adjustment in the first few months, including that of notebook department, and the "opportunity" was seized by its opponents.
In the past foreign brands chiefly focused on computers priced over 15,000 yuan, but since this year things have changed. The low-price market is no longer dominated by domestic brands and all-round competitions have been launched.
Foreign makers join in price warThe war escalated when foreign PC makers began to fight for computers priced around 10,000 yuan. In 1999 Legend first lowered its notebook price to 9999, which attracted a large group of buyers and triggered a round of "10,000 yuan" price war as other companies Founder and Unisplendour followed in.
Foreign makes as IBM and Toshiba have been keeping a high profile by pricing their products around 20,000 yuan to net more profits, and the notebook market is quiet because of different positioning of PC makers from home and abroad.
However, because this year's global sales are much lower than expected, foreign brands have shifted their attention to the still fast-growing Chinese market. Beginning from this year almost each of them put out a model priced around 15,000 yuan, with their sales surged accordingly.
Domestic brands no more have price advantagesToshiba unveiled its 9999 yuan notebook computer to start out, which has exerted great impacts on domestic companies.
The Chinese companies are indeed facing a grave situation, says Xia Yang, general manager of business department of Legend. Now domestic PC makers no longer have much price advantage but have to pull themselves together. "Didn't we grasp desktop PC shares from foreign brands"?
By PD Online staff member Li Heng
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