The phenomenal growth of the internet coupled with expanding mobile communications has ignited demand in China for portable computers, according to a survey by the global market research group Frost & Sullivan. It estimates there are 600,000 laptops and notebooks in the country, nearly all bought in the past three years.
F&S said China’s portable computer market grew nearly 46% last year, and is expected to post a compound annual growth rate of 18.7% until 2005. The market research group claims the blurring line between mobile communications and the internet is providing the fuel for this growth, which is giving rise to unprecedented demand for portable computers and providing numerous opportunities for established market players and new entrants to reap huge margins in China.
The report says revenues for the Chinese market are expected to experience continuous growth resulting from rapid technological advancements, the growing size of the mobile workforce, continuous and steady growth of the economy, increased internet usage and strong demand from small and medium-size enterprises.
According to the report, notebook computers accounted for 95% of the total Chinese portable computer market last year, but the sub-notebook segment of the market is projected to grow at a faster rate over the next several years.
The trend toward sub-notebook portables will allow new participants to enter the markets, thus intensifying competition, said F&S analyst Jay Chen.
The report also predicts the difference in prices between imported and locally made computers will narrow as global competition increases. Local companies will be forced to place greater emphasis on offering the latest technology and strengthening their brand names if they wish to compete, it says.
