PC vendors in China expected to gain against smaller Whitebox PC assemblers next year, IDC says

A study by IDC on the domestic PC market in mainland China has produced a number of valuable findings on the dynamics of the second largest PC market in the world. Consumers are the biggest buyers of “whitebox” PCs (PCs assembled by small independent shops rather than the larger brands available across the country). But on the commercial side, buyers increasingly gravitate toward major brands – both local and multinational – as the employee sizes increase. And while sales of whitebox PCs are growing at a fair pace, over the last few years they have not matched the overall growth of booming China PC market.

”Looking forward, this trend is expected to continue,” said Kitty Fok, Vice President of Greater China Research at IDC. ”Larger PC vendors in China are expected to continue to gain share from whiteboxes across most segments next year and beyond as they address consumer needs for price competitiveness and product reliability, which were two key factors uncovered in this survey. More than a third of consumer survey respondents plan to buy new PCs in the next two years, and more than half of Chinese consumers depend on recommendations from friends or family in order to make PC buying decisions, so major vendors have an opportunity here to really make an impact.”

This IDC study utilized a nationwide survey of both consumer and commercial PC buyers, covering a wide range of large and small cities throughout the country. This was supplemented by channel research, including PC malls, where many consumer PCs are purchased, and research on component shipments, as many whitebox PCs are assembled in the channel. The primary objectives of the study were to gain further insight into buying decision factors, life cycles, price sensitivity, configurations, distribution channels, and different end-user segments. This report also provides vendors with strategies and recommendations on how to further grow in China.

With added insight into this vibrant sector of the fast-growing Chinese PC market, IDC has increased its market size by adding in more whitebox desktops. Vendor market shares have been reduced as a result of the market size increase, but individual vendor shipments, growth rates, and rankings are unaffected. A larger market provides increased opportunity for growth, in particular for the leading PC vendors. Key opportunities for them lie in not only the consumer and SMB sectors, but also in the smaller cities of the country that continue to develop along with the country’s economic boom. Some sectors in particular, like Internet cafes, are also fruitful opportunities for vendors who are able to cater to their specific needs.

For more information contact Selina Ang sang@idc.com.

IDC