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China Industry Outlook: Computer Products Report Shows Computer Makers Expect Sales to Grow By 40 Percent to US$139 Billion in 2005

Posted on: Tuesday, 7 June 2005, 06:00 CDT

HONG KONG, June 7 /Xinhua-PRNewswire-FirstCall/ -- Global Sources' China Industry Outlook: Computer Products report shows mainland China makers of computers and computer peripherals are expected to generate revenue in excess of US$139 billion in 2005 -- up 40 percent from 2004.

The report provides in-depth analysis of China's computers and peripherals manufacturing industry and examines semiconductor demand and supply and design challenges. It is published jointly by Global Sources' Electronic Engineering Times-China (EE Times-China) and Electronics Supply & Manufacturing-China (ESM-China).

Publisher of EE Times-China and ESM-China, Mark Saunderson, said: "China's booming computer and peripherals industry achieved revenue in excess of US$99.5 billion in 2004 -- 33 percent of the total revenue of China's electronics industry. The segment is expected to maintain a compound annual growth rate of 32 percent through 2007.

"The rapid increase in notebook PC production is a major factor driving this growth. In 2005, makers are expected to produce more than 41 million notebook PCs -- up 50 percent. The software and IT services sector is also booming, with sales revenue projected to top US$38.5 billion in 2005 -- an increase of 32 percent."

The report also indicates that in 2005:

-- China's networking equipment production will grow rapidly. Makers will

produce 78.4 million routers, Ethernet switches and network cards -- up

21 percent from 2004.

-- Makers will produce 115.2 million computer monitors -- up 25 percent.

-- Desktop PC suppliers will produce 19.6 million units -- up 11 percent.

-- Server manufacturers will produce 679,000 servers -- up 17 percent,

with projected output value of US$2.52 billion -- up 13 percent.

Computer makers to import 77 percent of IC requirements

In the next few years, the development of China's computer industry is expected to accelerate due to computer makers' transition to 64-bit computer architecture, integration of Wi-Fi connectivity in most notebook computers, and local companies' increased effort to design and market their own brands.

Saunderson said: "In 2005, China's electronics sector will need US$59.85 billion worth of integrated circuits (ICs) to meet the demands of development. Although local IC design and production is increasing, makers are still expected to import nearly 94 percent of their IC requirements.

"In the computer sector, makers imported 79 percent of their 19.65 billion IC consumption in 2004. They are expected to import 18.38 billion ICs, or 77 percent of consumption, in 2005."

China Industry Outlook: Computer Products is the third in a three-part Outlook series examining China's electronics industry. Consumer Electronics was released in July 2004 and was followed by Communications Products, published in February 2005.

All three reports are based on field research and in-person interviews as well as data from the Ministry of Information Industry, China Customs and other government and industry organizations.

China Industry Outlook: Computer Products is available for US$695 and can be ordered online at http://www.globalsources.com/CWP .

About Global Sources

Global Sources is a leading business-to-business (B2B) media company that facilitates global trade, with a particular focus on the Greater China market, by providing information to international buyers and integrated marketing services to suppliers.

We deliver content to our communities through nine vertical marketplaces on Global Sources Online ( http://www.globalsources.com/ ) and through specialized magazines, China Sourcing Fairs and technical events. These media serve a growing, independently certified community of more than 430,000 active buyers in over 230 countries and territories. These buyers generate more than 4 million inquiries annually for more than 130,000 suppliers through Global Sources Online alone.

We offer extensive creative services through 150 client service officers, and through more than 850 sales representatives who make approximately 45,000 supplier visits monthly. In mainland China, we have 23 years on-the-ground presence, and are supported by more than 1,200 team members in 44 locations.

Global Sources' solutions are based on 34 years as a trade magazine publisher serving the global trade community, 14 years as a trade management software developer, 13 years as manager of trade shows in Asia, and nine years as an online marketplace operator.

Electronic Engineering Times-China (EE Times-China) and Electronics Supply & Manufacturing-China (ESM-China) are published by eMedia Asia Ltd., a joint venture between Global Sources and CMP, a leading integrated media company providing essential information and marketing services to the entire technology spectrum. The joint venture is a leading provider of new technology content, in print and online for the 150,000-plus technology specialists that drive the electronics industry in China and Asia. eMedia Asia Ltd. serves this community's ongoing need for the right information, at the right time through its integrated, local-language web networks, premier technical events and industry leading publications -- Electronics Supply & Manufacturing-China and Electronic Engineering Times-Asia.

This news release contains forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933, as amended and Section 21-E of the Securities Exchange Act of 1934, as amended. The company's actual results could differ materially from those set forth in the forward-looking statements as a result of the risks associated with the company's business, changes in general economic conditions, and changes in the assumptions used in making such forward-looking statements.

Global Sources Press Contact in Asia:

Camellia So

Tel: +852-2555-5023

Email: cso@globalsources.com

Global Sources Press Contact in U.S.:

James W.W. Strachan

Tel: +1-602-978-7504

Email: strachan@globalsources.com

Global Sources Investor Contact in Asia:

Eddie Heng

Tel: +65-6547-2850

Email: eheng@globalsources.com

Global Sources Investor Contacts in U.S.:

Kirsten Chapman & Moriah Shilton

Lippert/Heilshorn & Associates, Inc.

Tel: +1-415-433-3777

Email: kirsten@lhai-sf.com

Web sites: http://www.globalsources.com http://www.globalsources.com/CWP

Global Sources Ltd.

CONTACT: For investors in Asia, Eddie Heng, +65-6547-2850, oreheng@globalsources.com, in U.S, Kirsten Chapman & Moriah Shilton,+1-415-433-3777, or fax, +1-415-433-5577; or kirsten@lhai-sf.com, ofLippert/Heilshorn & Associates, Inc. for Global Sources; For media in Asia,Camellia So of Global Sources, +852-2555-5023 or cso@globalsources.com, or inU.S., James W.W. Strachan, +1-602-978-7504, or strachan@globalsources.com,both of Global Sources

Source: PRNewswire

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