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44 percent surge in Malaysian PC market: IDC

AvantiKumar | July 5, 2012
Malaysian government's mini-notebook project is the primary contributor to the surge in the local PC market during the first quarter of 2012, says IDC.

Ng Juan Jin, Market Analyst, Client Devices, IDC ASEAN

PHOTO - Ng Juan Jin, market analyst, client devices research, IDC ASEAN.

The Malaysian Government's Netbook Project has contributed to a sequential 44 percent surge in the local PC market during the first quarter of 2012, according to analyst firm IDC.

IDC market analyst, client devices research, ASEAN, Ng Juan Jin, said the fulfilment of more than 300,000 mini-notebooks under phase 3A of the government regulator MCMC (Malaysian Communications and Multimedia Commission) 1Million Netbooks programme helped the country avoid a sluggish flat PC market.

"The IDC Asia/Pacific PC Tracker, for quarter one of 2012, registered an impressive sequential increase of 44 percent to 1,103,000 units for Malaysia's PC market," said Ng.

"The commercial segment declined 22 percent quarter-on-quarter (QoQ) in the first quarter of 2012," he said. "This decline was expected as a large mini-notebook delivery to Terengganu schoolchildren in the fourth quarter of 2011 was not repeated this quarter. The non-repeat of the Terengganu school project was not the only reason behind lackluster commercial spending. The government sector was particularly slow as well, declining 33 percent QoQ as federal spending was focused on community and social welfare projects rather than on IT infrastructure investment."

"The large and very large enterprise segment fell by 22 percent as they held off on spending this quarter after engaging in PC refreshment cycles in quarter four of 2011," said Ng.

Ng said the consumer segment fared relatively better compared to the commercial sector, growing marginally by eight percent QoQ. "The HDD [hard disk drive] crisis which restricted the supply of PCs in the fourth quarter of 2011 was resolved earlier than expected and this allowed vendors to resume regular channel loading activity. AMD also contributed to the growth of the consumer notebook market. It managed to make headway in the low-end home segment by pushing its affordable models to price-conscious consumers."

"We expect delivery of the final phase of the government's MCMC mini-notebook project in the upcoming quarter." said Ng. "However, as the size of this rollout is smaller than in the first quarter, 2012, at just over 200,000 units, a drop in the total second quarter 2012 of the PC market is inevitable. Enterprise spending from Large/Very Large enterprises and SME segments is expected to prop up the commercial market as there has been no word as of yet regarding the rollout of large public sector projects."


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