China PC market feels the price pressure

With increasing personal income in China and falling prices of motherboards and processors, competition for desktops now centers on models with price tags ranging between 5,000 and 7,000 yuan, compared with the previous entry-level machines at 5,000 yuan, the sources quoted date released by the CCID (China Center of Information Industry Development) as saying. Desktops with prices ranging between 5,000 and 7,000 yuan accounted for 40.6% of total desktops sold in China in the third quarter, compared with 37.1% for models priced at below 5,000 yuan, according to CCID.

Top foreign brands, including IBM and Dell, which were concentrating on models at 7,000 yuan and above, have stepped up efforts to boost sales in the lower segments. The move could dent the market share of Acer and other Taiwanese brands, which have been focused on the 5,000-7,000 yuan models. China?s notebook market, which is expected to grow to 1.2 million units this year, will exert additional pressure on the desktops. With many newcomers in the market, the share of the top five brands dropped to 64.9% in the third quarter from 65.3% of the previous quarter, according to CCID. The sources expect this to fall further as new players become established and pricing gets more competitive.

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