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Local PC market all set for growth, NEW STRAITS TIMES-MANAGEMENT

Posted on: Tuesday, 28 October 2003, 06:00 CST

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Emerging Markets DatafileOctober 27, 2003

NEW STRAITS TIMES-MANAGEMENT TIMES

MALAYSIA

ENGLISH

Local PC market all set for growth, NEW STRAITS TIMES-MANAGEMENT TIMES

Foo Eu Jin

ASIA

WorldSources, Inc. 322 MASSACHUSETTS AVENUE 2ND FLOOR, NE WASHINGTON, DC 20002

COPYRIGHT 2003 BY WORLDSOURCES, INC., A JOINT VENTURE OF FDCH e-Media, INC. AND WORLD TIMES, INC. NO PORTION OF THE MATERIALS CONTAINED HEREIN MAY BE USED IN ANY MEDIA WITHOUT ATTRIBUTION TO WORLDSOURCES, INC.

THE local personal computer (PC) market looks set for further growth in the fourth quarter of this year, mainly due to the increase in consumer and commercial buying sentiment, and higher information and communications technology (ICT) spending by the Government.

The market is expected to grow 19 per cent in fourth quarter compared to third quarter, which saw about 213,000 units sold, based on preliminary estimates by research house International Data Corp (IDC).

IDC Malaysia's senior analyst Andrew Wong said large businesses, and small and medium-sized enterprises are expected to increase spending on PCs in fourth quarter, although declining spending is expected from individuals in the festive season as more expenditure on shopping and vacations are expected.

He added that the spending in the education segment is set to provide a boost to the PC market, as reflected to the project to supply 33,000 notebooks to schools under the Education Ministry's initiative.

According to Wong, the popularity of wireless local area network (WLAN) is also another factor for boosting the sales of PCs, especially with the rise of mobile professionals.

Meanwhile, IDC's preliminary results showed that Asia-Pacific's (excluding Japan) PC market totalled 7.4 million units in third quarter of 2003, almost exactly in line with IDC's initial forecast. This was a 13 per cent gain both from the previous quarter and the same period a year ago.

Although the quarter is a seasonal low for countries such as Australia and New Zealand, robust growth rates in markets like China and Taiwan, and a revival in large orders helped to sustain PC shipments in the region.

IDC Asia-Pacific's senior research manager of personal systems Bryan Ma said the region can expect normal purchase patterns to resume, now that the severe acute respiratory syndrome (SARS) scare is over.

``In fact, further growth is expected in the upcoming quarters due to the rapidly approaching year-end holidays as well as a gradual improvement in the regional economy next year,'' he said.

Vendors' efforts to capture back-to-school demand as well as continued government and education purchases in many countries in the region also drove PC shipments in third quarter of 2003.

Copyright 2003 NEW STRAITS TIMES-MANAGEMENT TIMES all rights reserved as distributed by WorldSources, Inc.

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