PHOTO - Ng Juan Jin, market analyst, client devices, IDC ASEAN.
Malaysia's PC market has declined 25 percent sequentially and 16 percent year-on-year (YoY) in the third quarter of 2011, according to research firm IDC's latest Asia/Pacific Quarterly Tracker results.
However, the drop to 684,333 units was expected as this quarter did not record any netbook shipments under the government regulator Malaysian Communications and Multimedia Commission (MCMC) shipments of one million netbooks programme, said IDC ASEAN market analyst, client devices, Ng Juan Jin, speaking on 7 December 2011.
"However, 280,000 MCMC netbooks were shipped in the second quarter of 2011 and 123,000 in the third quarter of 2010, resulting in abnormally large PC shipments for those quarters," said Ng.
"Despite the inorganic decline, channel activity was still relatively healthy," he said. "The market saw some channel expansion as distributors expressed more confidence and increased their shipments of new PC models. At the end-user level, price drops further invigorated consumer spending, especially on higher-end skews with Core i5 processors where prices dropped to as low as RM1,799 (US$575)."
He said that AMD had a strong quarter. "Their PC shipments increased almost 20 percent sequentially. AMD caters largely to the low-end market and cut prices of its E series lineup by 10 percent. As a result, E-series installed PCs saw an increase of 26 percent from the previous quarter. This aggressive pricing strategy will likely cause a chain reaction and drive down the Average Selling Values (ASV) of Intel models in the coming quarters."
Ng said that the commercial market was stagnant in quarter three, 2011. "Overall, public sector spending was sluggish as the government held off on committing to largescale projects such as the Customs Department and Ministry of Education deliveries seen in 2010. Small-Medium Enterprise (SMEs) spending also took a hit from the festive period which disrupted routine PC refreshment cycles. Several SME-centric models were pulled from the market, which further contributed to the commercial notebook decline in this quarter."
Fourth quarter expectations
"IDC is expecting the fourth quarter of 2011 to show a decline in the PC market," he said. "Recent channel feedback indicates that distributor inventory levels are still high while sellout is not encouraging on the retail front compared to the previous quarter. Vendors are not expecting significant gains from the PIKOM PC Fair, which will be held in December either. Portables, especially networks, will also see a decline as several vendors have withdrawn from this highly unprofitable market."
"The hard disk drive (HDD) shortage crisis from the Thailand floods will impact netbooks the most as supply priority is given to larger form factors which generate higher revenue for vendors," Ng said.
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