Business

Monday October 12, 2009

More go for notebooks than desktops

By LEE KIAN SEONG


But there is still demand for desktops, especially from commercial sector

PETALING JAYA: Demand for notebooks in the country is now outpacing desktops due to its portability and convenience.

However, there is still demand for desktops, especially in the commercial sector.

According to market research and analysis firm IDC, the overall Malaysian personal computer (PC) market last year showed a year-on-year growth of 21% to 2.14 million units from 1.76 million units.

Jaygan Fu Ponnudurai: "The mini-notebook is treated as a second PC for light usage".

“The growth was contributed by the significant uptake of consumer portables as prices fall significantly due to price wars among vendors,” said IDC market analyst Jaygan Fu Ponnudurai.

The consumer portables market continue to record an impressive 35.7% year-on-year growth in the first half this year with mini-notebooks becoming significantly popular, according to Jaygan.

“The mini-notebook is treated as a second PC for light usage such as online chat applications, e-mails and Internet surfing,” he said.

HP Malaysia country general manager Danny Lee said desktop and notebook PCs would continue to be in demand locally.

“The growing trend shows that consumers today aspire to own a notebook or desktop PC that provides an uncompromised experience and defines their personality – and they want all of this at an affordable price,” he said.

“Our experience suggests that it is not just about the costs, it is also about experience, usage and interaction that the consumers are looking to get from their PCs.”

According to IDC’s Worldwide Quarterly PC Tracker released in July, PC shipments have exceeded forecasts, fuelled by the “very strong” growth of portables, particularly in South-East Asia.

China was a bright spot in the region while India came in close to expectations, with shipment growth returning to positive territory after several quarters of declining volumes, according to the report.

Lenovo Malaysia country manager for consumer business, Eric Zhao, said demand for notebooks and desktops locally was quite different in the consumer and commercial segments.

“Notebooks are outselling desktops locally but desktops still outsells notebooks in the commercial sector,” he noted.

Although the demand for notebooks is currently outpacing desktops, Zhao does not see the day when desktops become obsolete.

“Desktops and notebooks have different usage scenarios, so they do not necessarily compete with each other. Factors like mobility and costs can largely determine if a user, corporate or consumer, decides on a desktop or notebook,” he said.

He noted that desktops were still in demand in the commercial sector due to data security and cost concerns. Lenovo’s notebook computers continued to be the largest contributor to the company’s sales worldwide, generating 64% of total sales revenue for its first fiscal quarter ended June 30.

Consolidated sales for Lenovo’s notebook PC worldwide in the first quarter totalled US$2.2bil, with notebook shipments up 2% year-on-year.

Lenovo Malaysia country manager for commercial business, Khoo Hung Chuan, said demand for computers varied from country to country and industry to industry in the region.

“Closer to home, notebooks on the whole outsells desktops in most Asean countries with the exception of Vietnam and the Philippines.

“In these two countries where the purchasing power of consumers are still generally not as strong as other Asean countries, the desktop is favoured to the notebook,” he said.

Dell’s South Asia general manager for small and medium business, Khoo Teng Guan, said the company saw an increase in PC shipments in the second quarter of its 2010 financial year, with revenue from desktop PCs increasing by 5% from the previous quarter but revenue from mobility systems remained flat.

“Asia-Pacific is the fastest-growing business in the long term for Dell. As China and India continue to grow, we expect other countries in the region to perform as well,” he said.

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