PC market in Asia back to pre-crisis golden age

PC market in Asia back to pre-crisis golden age

SINGAPORE (AFP): Asia's market for personal computers (PCs) returned to pre-crisis levels in the last quarter of 1998, boosting hopes of a rebound in the regional market this year, a research firm said Thursday.

PC shipments in the Asia-Pacific rose seven percent from a year ago to 2.89 million units in the three months to December, a 11-percent jump on the previous quarter, International Data Corp. (IDC) Asia/Pacific said.

"With the fourth quarter results, there is reason for guarded optimism looking toward 1999," said Kitty Fok, research manager at IDC Asia/Pacific based in Singapore.

IDC, which specializes in information-technology market research, forecast regional PC shipment growth to exceed 14 percent in 1999, as the region recovers from the economic crisis that erupted in mid-1997.

"If market conditions in China, India and Australia remain healthy, the regional PC market should generate solid gains in 1999, producing the highest annual shipment total to date for the regional market," she added.

However, PC shipment growth for the whole of 1998 was negative, with preliminary findings indicating a decline of 0.6 percent to 10.47 million PCs compared to 1997.

China, Australia and India offset heavy falls in PC shipments in Southeast Asia and South Korea.

IDC said the PC market growth in China for 1998 stood at 29.5 percent, lower than 44 percent a year ago, but that the gains were backed by the home market, the low PC penetration and economic expansion.

The sharpest market losses in 1998 were seen in Indonesia, which fell by 81.1 percent, Thailand by 40.5 percent and South Korea by 34.3 percent.

Among the Southeast Asian countries, only Thailand and the Philippines registered positive growth rates in their PC markets in the fourth quarter of 1998.