SARS slows computer sales
( 2003-07-30 08:02) (China Daily)
The computer industry in
China suffered a setback in the second quarter due to the impact of SARS, but
the prospects for the rest of the year remain rosy, said the domestic market
research firm CCID Consulting Co Ltd.
"It is the first time that computer
market growth is below 5 per cent, and SARS is the primary reason,'' said Huang
Qi, vice-president of the firm under the Ministry of Information
Industry.
According to figures released from CCID Consulting, the volume
of China's computer market stood at 62.78 billion yuan (US$7.58 billion) in the
second quarter, with a three per cent growth year-on-year.
He added that
the deadly epidemic rampant during April and May had suppressed the purchasing
plans of customers and caused the closure of many computer marketplaces in North
China and South China.
The second quarter, usually a flat time for
computer sales, was another factor in the slow growth of the computer market,
Huang said.
With shrinking demands, price wars became more intense and
further reduced the profits of computer vendors.
CCID Consulting's data
showed the shipments of desktop computers reached 2.14 million units for the
April-to-June period, a rise of only 4 per cent year-on-year, while the sale of
computer server equipment grew by 10 per cent to 57,900 units.
What is
worse is that the sales of desktops dropped by 1 per cent to 13.41 billion yuan
(US$1.62 billion) and those of computer server equipment fell by 3 per cent to
1.39 billion yuan (US$168 million).
Notebook computers were an exception
to the trend, with 40 per cent growth in shipments and 269,200 units sold, and
sales grew by 25 per cent to 3.37 billion yuan (US$407 million).
However,
CCID Consulting believes the slowed growth is temporary.
"We have seen
some signs of recovery and the suppressed demand will bounce back in the second
half of the year,'' said Huang Qi.
He predicted the computer market in
the third quarter will achieve 15.8 per cent growth compared with that in the
same period last year with a total shipment of 2.97 million units.
CCID
Consulting also said shipments of mobile phones also suffered from a negative
year-on-year growth in the past quarter due to the SARS impact and increasing
competition.
According to the company, 15.02 million handsets were sold
in the second quarter, down 3 per cent compared with sales in the same period
last year, while sales stood at 24.21 billion yuan (US$2.92 billion), down 10
per cent year-on-year.
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