Gartner: PC penetration rate to increase by 2003
According to results from Gartner Dataquest, a unit of Gartner Group, Inc (NYSE: IT and ITB), PC penetration rate for homes in Singapore will exceed 60 percent by the end of 2003. The demand for PCs is expected to be driven by the increasing use and availability of broadband Internet access facilitated by falling subscription fees, better content, and the government's drive to sustain its nationwide broadband initiative. In Singapore, PC shipment to this market closed with a total of 525,018 units for the year 2000, representing a moderate increase of 6.8 percent over 1999. Hewlett-Packard remains the top vendor in Singapore in terms of market share, followed closely by Compaq and IBM (refer to Table 1).
Table 1
| Vendor Market Share in Singapore | Year/2000 Share |
| Hewlett-Packard | 14.0% |
| Compaq Computer | 12.0% |
| IBM | 11.7% |
| Dell Computer | 11.1% |
| Acer | 7.8% |
| Others | 43.4% |
| Total | 100% |
The Singapore PC market maintained its growth for the year despite being a maturing market where the demand for PCs is traditionally driven by professional in the replacement cycles. The availability of free Internet access from SingTel and Starhub at the beginning of 2000 provided home users without PCs the incentive to purchase computers for their homes. Users were also attracted by PC vendors' offerings of computers with high clock speeds of 600 MHz to 900 MHz, which were ideal platforms for running most available applications at an optimum price-performance ratio. Lastly, the introduction of installment schemes by the National Trade Union Congress (NTUC) for the purchase of PCs also made it possible for lower-income families to afford new PCs.
In the fourth quarter of 2000, PC shipments in Asia Pacific (excluding Japan) reached 4.5 million units. This figure represents an increase of 15 percent in PC shipment compared to the fourth quarter of 1999, but was a decline of 0.8 percent compared to the third quarter of 2000 (refer to Table 2). Though hardware spending on a year?on?year basis has risen, cautious spending was evident on a quarter?on?quarter comparison with the negative growth result.
"The overall market failed to achieve higher growth rates due to the negative impact of the U.S. currency exchange rate, which affected the cost of systems. Additionally, negative reports on the U.S. market caused a dampening effect to the usual frenzy buying period as it affected confidence and home and business expenditures in general. New technologies introduced such as operating systems and higher clock speed of processors also did not manage to entice buyers," said Lillian Tay, Senior Analyst at Gartner Dataquest.
Table 2
Unit shipments by countries, 4Q/00
| 2000 Q4 | Share | 4Q/00 - 4Q/99 Growth | 4Q/00 - 3Q/00 Growth | |
| China | 1,807,246 | 39.8% | 23.2% | 0.3% |
| Korea | 863,777 | 19.0% | 12.2% | 4.5% |
| Australia | 464,303 | 10.2% | -9.1% | -17.7% |
| India | 293,234 | 6.5% | 45.6% | 9.5% |
| Taiwan | 277,694 | 6.1% | -5.3% | -6.4% |
| Hong Kong | 161,300 | 3.6% | 26.9% | -7.1% |
| Singapore | 147,950 | 3.3% | -1.6% | 6.2% |
| Malaysia | 133,062 | 2.9% | 25.4% | 19.6% |
| Indonesia | 99,668 | 2.2% | 18.5% | 1.8% |
| Thailand | 92,926 | 2.0% | 39.2% | -8.2% |
| New Zealand | 72,480 | 1.6% | 17.1% | 6.4% |
| Philippines | 57,008 | 1.3% | 5.6% | -18.5% |
| Rest of Asia / Pacific | 36,555 | 0.8% | 33.6% | 26.1% |
| Vietnam | 34,327 | 0.8% | 14.8% | 11.8% |
| Asia Pacific | 4,541,530 | 100.0% | 15.0% | -0.8% |
Source: Gartner Dataquest (February 2001)
Note: Data includes Deskbased PCs and Mobile PCs
In Australia, despite of the aggressive pricing amongst the major vendors in the month of December, the lingering effects of the Olympics, unfavorable exchange rate and rising petrol prices resulted in a cautious buying environment affecting the third largest PC market in Asia Pacific. Lower IT spending from the government and education segments as compared to the fourth quarter 1999 affected the growth rate for Taiwan as well as the government's lack of economic policy causing enterprises to freeze new computer purchases and households to reduce the expenditure on computers.
Dell recorded the highest growth rate among the top 10 vendors (refer to Table 3) for the quarter followed by two Chinese local vendors, Legend and Great Wall.
Table 3
Vendor Unit Shipments, Q4/00
| 2000 Q4 Share | 4Q/00 - 4Q/99 Growth | 4Q/00 - 3Q/00 Growth | |
| Legend | 12.1% | 60.3% | 8.5% |
| IBM | 8.4% | 24.3% | -6.2% |
| Samsung Electronics | 8.0% | 34.6% | 7.3% |
| Compaq Computer | 6.7% | 19.3% | -1.4% |
| Acer | 5.2% | 25.6% | -2.2% |
| Hewlett-Packard | 4.8% | 7.7% | -2.6% |
| Dell Computer | 4.7% | 72.6% | 17.6% |
| TriGem Computer | 4.6% | 15.9% | 2.9% |
| Great Wall | 2.2% | 36.5% | -13.6% |
| Founder | 2.1% | 9.2% | -2.6% |
| Others | 41.3% | -2.5% | -4.2% |
| Total | 100% | 15.0% | -0.8% |
Note: Data includes Deskbased PCs and Mobile PCs
In Asia Pacific, PC shipment grew by 29.6 percent over 1999, at 17.3 million units. China, Korea, India, Indonesia and Thailand posted strong growth rates and increase in market shares from 1999 (refer to Table 4). China is a huge market in Asia Pacific and success in China can propel the market share of a vendor. "China's entry into the WTO (World Trade Organization) may introduce more PC vendors into the market and increase competition. It is therefore imperative that existing vendors have a concrete business strategy and invest to grow country wide, " added Tay.
Table 4
Country Unit Shipments, Year 2000
| Year/2000 | Share | Year/1999 | Share | Growth | |
| China | 6,560,521 | 37.8% | 4,939,359 | 36.9% | 32.8% |
| Korea | 3,570,347 | 20.6% | 2,033,540 | 15.2% | 75.6% |
| Australia | 2,058,863 | 11.9% | 2,089,645 | 15.6% | -1.5% |
| Taiwan | 1,080,612 | 6.2% | 1,143,475 | 8.5% | -5.5% |
| India | 1,030,964 | 5.9% | 686,699 | 5.1% | 50.1% |
| Hong Kong | 603,609 | 3.5% | 445,207 | 3.3% | 35.6% |
| Singapore | 525,018 | 3.0% | 491,455 | 3.7% | 6.8% |
| Malaysia | 425,018 | 2.5% | 347,253 | 2.6% | 22.4% |
| Indonesia | 383,425 | 2.2% | 276,769 | 2.1% | 38.5% |
| Thailand | 358,197 | 2.1% | 247,223 | 1.8% | 44.9% |
| New Zealand | 260,669 | 1.5% | 247,962 | 1.9% | 5.1% |
| Philippines | 248,476 | 1.4% | 225,339 | 1.7% | 10.3% |
| Vietnam | 120,572 | 0.7% | 112,470 | 0.8% | 7.2% |
| Rest of Asia / Pacific | 113,740 | 0.7% | 91,571 | 0.7% | 24.2% |
| Asia Pacific | 17,340,146 | 100% | 13,377,966 | 100% | 29.6% |
Note: Data includes Deskbased PCs and Mobile PCs
With the exception of Dell, non US-based companies performed better with growth rates twice the industry average (refer to Table 5). The home segment accounted for 33 percent of the PC market in 2000, an increase of 6 percent and growth rate of 60 percent over 1999.
Table 5
Vendor Unit Shipments, Year 2000
| Year/2000 | Year/1999 | Growth | |
| Legend | 1,821,700 | 965,906 | 88.6% |
| Samsung Electronics | 1,463,500 | 784,200 | 86.6% |
| IBM | 1,396,662 | 1,091,650 | 27.9% |
| Compaq Computer | 1,171,049 | 965,824 | 21.2% |
| TriGem Computer | 880,000 | 439,850 | 100.1% |
| Hewlett-Packard | 872,640 | 673,972 | 29.5% |
| Acer | 866,858 | 671,075 | 29.2% |
| Dell Computer | 671,051 | 397,191 | 68.9% |
| Great Wall | 371,391 | 253,364 | 46.6% |
| Founder | 352,570 | 279,774 | 26.0% |
| Others | 7,472,725 | 6,855,161 | 9.0% |
| Total | 17,340,146 | 13,377,966 | 29.6% |
Note: Data includes Deskbased PCs and Mobile PCs
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