Analysys International Says China's PC Market Continues Growing to Reach RMB20.26 Billion in Q3 2005, While Dell's Market Share Drops

Analysys International says that China's PC market continued to grow by 10.8%, in shipment compared with that of last year, to reach RMB20.26 billion in Q3 2005 in its recently released Quarterly Tracker on China's PC Market 2005-Q3. But the market share of international giant Dell dropped due to the weak sales power in small cities, the SME market and fierce competition. According to Analysys International's data, in Q3 2005, China's PC market had reached 3.56 million sets in shipment with a growth of 10.8% compared with last year; and the market size had reached RMB20.26 billion in revenue with a growth of 6.9% compared with that of last year. The profit rate kept on decreasing while the competition continued to be intensified. http://english.analysys.com.cn/news.php?id=126 Business PCs had occupied more than half of the total market shipment. As family users tend to buy DIY PCs, the business PC market has become the main battlefield for PC vendors. Analysys International's data shows that the brand concentration has become a clearer trend while the difficulty to survive for small vendors has increased. As international vendors are putting more attention on China's market, the 4-5th tier small cities and towns become the main focus of the PC vendors. The price has been too low to become a killing weapon. The market share of Dell had dropped in the third quarter this year, which has received wide attention from every side. Analysys International thinks that Dell's weak sales power in small cities, the SME market and fierce competition from Lenovo, after the acquisition of IBM's PC Department and HP, in the middle-low end market are the main reasons for this decline. http://english.analysys.com.cn/news.php?id=126 ''The concentration degree in China's PC market is increasing, and channel sales become the breaking point for vendors. Some local vendors in certain areas still have some market potential to explore due to the regional protectionism, but vendors who have not got enough strength and who spread their sales channels aimlessly will face severe crisis for survival,'' says Wang Tao, an analyst from Analysys International, ''The coming of the Olympic Games in 2008 and the red-hot demands of enterprise informationalization will further enlarge the gaps in the market.'' This subject will be discussed with other key industry issues in the coming TMT (technology, media and telecom) Industry Annual Summit held by Analysys International on Dec., 9th 2005 in Beijing. Additional information is available in Analysys International's data report: Quarterly Tracker on China's PC Market 2005-Q3 available in Analysys International's website: http://english.analysys.com.cn . About Analysys International Analysys International is the leading Internet based provider of business information about technology, media and the telecom industry in China with the mission to help their clients make better business decisions. They provide data, information and advice to 50,000 clients worldwide, representing 1,500 distinct organizations, deliver over 150 consulting engagements a year, and hold more than 20 events that draw in over 8,000 attendees. Their clients include executives from companies like technology vendors, vertical information technology users, as well as professionals from professional service companies, the investment community and government agencies. For more information, please visit the web site at http://english.analysys.com.cn . For more information, please contact: Jessica Wang Tel: +86-10-6466-6565 x394 Email: jessica_wang@analysys.com.cn

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