With the boom in internet access driving strong demand for low-priced PCs, Korea’s desktop manufacturers are ramping up production capacity in anticipation of taking a 10% share of global PC sales in 2000. According to reports in the Korea Times domestic, PC makers expect to ship 10 million units next year, with 7 million destined for the export market.
Korea’s burgeoning PC sector is being led by four major suppliers, Daewoo, LG-IBM, Samsung, and Trigem, who between them produced 7 million units (5 million for export) this year, accounting for 6.3% of world sales. The big four were the chief beneficiaries of the Korean government’s decision to subsidize domestic internet access packages, and also won important manufacturing contracts from major US suppliers. Samsung, for instance, this year built 100,000 Apple iMac’s on an OEM basis, and also built substantial numbers of machines on behalf of Gateway. TriGem has also been subcontracted to build machines for Hewlett-Packard and, together with its local partner, Korea Data Systems, has made progress in the US on its own account, thanks to the success of its budget eMachine range.
