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Philippines PC Market Posts Record Shipments in 3Q 2011, Says IDC

04 Jan

Source: IDC Asia/Pacific Quarterly PC Tracker 3Q 2011

In 3Q 2011, IDC recorded an increase of PC shipments for the third straight quarter to 498,000 units. The uptrend can be attributed to the portables segment which grew 13% from the previous quarter while total desktop shipments remained stagnant at 189,000 units. In addition, all major PC vendors posted better mininotebook shipments as consumers responded positively to further price reductions — some as low as PhP 9,999. Channel expansion and inventory loading also boosted overall shipment numbers. Overall, the Philippines PC market increased by 7% sequentially and 25% year-on-year.

Price-sensitivity is still a major characteristic of the local retail market. According to Ng Juan Jin, Market Analyst for Client Devices Research at IDC ASEAN, “The popularity of mininotebooks is evidence of end users prioritizing affordability over more advanced specifications. The surge in shipments indicates that first time users are content with the functionality of mininotebooks. And, given the relatively low adoption rate of PCs and the large low-income segment in the Philippines, there is still growth potential for mininotebooks provided prices remain low relative to other competing IT devices.” Sequential and year-on-year growth rates for mininotebooks are at 29% and 36% respectively. He adds, “AMD’s new processors are also increasingly popular among MNCs that are looking to diversify their model lineup while keeping prices low.”

Source: IDC Asia/Pacific Quarterly PC Tracker 3Q 2011

Overall public sector spending was still weak, bogged down by a significant decline in the education segment as the government held off on approving large-scale projects. However, BPOs (Business Process Outsourcing Companies) maintained their IT spending levels in Q3, which helped stave off an even steeper decline in the commercial market. Overall enterprise spending, including SMEs (Small and Medium Enterprises), remained flat over the previous quarter.

Juan Jin continues, “IDC is expecting a significant decline in the Philippines PC market in the upcoming quarter due to the current HDD crisis stemming from the severe Thailand floods. The market’s reliance on mininotebooks for growth will prove to be a hindrance as these high-turnover models are expected to be sidelined in favor of larger form factors that provide higher profit margins. Channels will likely take advantage of lower quotas from impending PC shortages and focus on clearing stocks from their inventory instead.”

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Posted by on January 4, 2012 in News

 

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