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CCID Consulting: Slow Growth for China’s Desktop PC Market, Second-tier Markets a New Focus

2008-08-29 15:17 1635

BEIJING, Aug. 29 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released an article on China’s Desktop PC Market’s Characteristics and Trend in 2008Q2.

CCID Consulting’s data shows that China’s desktop PC market’s growth rate slows down in 2008Q2. The sales volume of China’s desktop PC market reaches 5.368 million sets in 2008Q2, up 9.5% year-on-year; the sales revenue reaches 20.72 billion Yuan, up 2.7% year-on-year. Notebook PC market maintains rapid growth and continues to nibble desktop PC market share. Besides, macro-economic situation and natural disaster bring adverse effect on desktop PC, especially for southwest and northwest markets. As for the vertical market, home and SMEs markets are still major growth points.

Figure 1: Sales Volume and Sales Revenue of China’s Desktop PC Market in 2008Q2

http://www.ccidconsulting.com/upload/13747.jpg

Source: CCID Consulting, July 2008

As for major manufacturers, under the Olympic brand strategy, Lenovo launches the desktop PC Olympic type with vigorous promotion. HP launches whole line commercial desktop PC. HP actively develops the regional markets, focusing 4-5 tier cities and layout 6-tier cities. DELL actively carries through direct sale mode’s transformation. By means of 3C store and professional IT store, DELL’s channels rapidly develop to small and medium cities.

Desktop PC market has following characteristics and trends in 2008Q2:

1. Upstream Manufacturers Launch New Products and Speed up Upgrade

Intel 45nm processor products release in 2008Q, AMD launches Phenom Triple-Core and Quad-Core products. Upstream manufacturers drive major whole machine manufacturers to launch relevant high-end products. It is forecasted that processors’ upgrade in 2008H2 will speed up, the market share of quad-core desktop PC will significantly increase and single-core products will gradually leave the market.

2. Regional market becomes the focus of PC manufacturers

The opportunity of Desktop PCs has transferred from major cities to four tier -- six tier market, which shows the development potential of regional market. Adjusting channel strategy, most manufacturers now release new desktop PC products for regional market under sales mode such as broadband bundling sales so as to accelerate villages and towns market arrangement. Regional market will be more competitive in the second half of 2008. CCID Consulting believes that manufacturers should develop segment desktop PC products and solutions basing on regional features and demands from target user groups as well as establish complete service network to provide speedy humanized service.

3. PC retailer terminals are changing with diversified channels. Most PC manufacturers have an optimistic view to 3C stores as an important PC channel due to the convergence of 3C products accelerates. More PC manufacturers enter 3C stores and establish strategic cooperation relationship with Gome, Suning, and other household appliance chain stores. Besides, some PC manufacturers set foot in TV shopping, online shopping, and other sales channels, which have been an effective complement to traditional channels.

4. Olympic-marketing enters a key stage and summer promotion starts in advance. Summer promotion starts in advance due to Beijing Olympic Games. Many manufacturers carry out Olympic-market strategy and release individualized diversified segment products and different promotion sales strategy. High-definition concept is popularized and most PC manufacturers release ‘high definition’ desktop PC products.

About CCID Consulting

CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company’s business scope has covered over 200 large and medium-sized cities in China.

Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting’s customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.

For more information, please contact:

Cynthia Liu

Coordinating Manager

CCID Consulting Co., Ltd.

Tel: +86-10-8855-9080

Email: liuyan@ccidconsulting.com

Source: CCID Consulting Co., Ltd.
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