China's PC Market Taking Off

The popularity of home PCs boosted the bottom line of China's sluggish computer companies during the first half of this year as foreign brands faced increasing competition from local manufacturers.

A preliminary report conducted by International Data Corp.(IDC) said shipments of home desktops soared 40.8 percent to 500,000 units during the January-June period.

"The home PC market, after one-year's cultivation, is taking off and will be a new growth area for the whole PC market," Fanny Yang, a research manager with IDC China, was cited by today's Business Weekly as saying.

Nationwide, 2.22 million units of home PCs were shipped, up 19. 6 percent from the same period last year, while business desktop shipments grew 14 percent to 1.56 million.

Foreign computer makers, which have long focused on China' high- end market and group purchasing, began attempts to tap the country 's mid-level consumer pool.

In contrast, domestic PC companies, especially newcomers, have shifted their focus from the business sector to the fledgling home PC market.

"Domestic PC companies hold an advantage in exploring the huge potential of the home PC market," Yang said.
In terms of market performance, the local brands have gained a dominant position after a long race with foreign giants.

IDC reports indicate that six of the top ten vendors in China's computer market during the first six months of the year were local manufacturers.

Industry insiders said the market share of foreign brands is likely to shrink further when the country's home PC market booms.