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October 27, 2005

Small businesses in China to purchase 5 million PCs

Recent report by AMI-Partners, a research firm, small businesses in China will purchase around 5 million PCs in the next 12 months. But PC makers should not be too excited as Chinese businesses are price sensitive when purchasing PCs often preferring local brands such as Lenovo to big name companies such as Dell or HP.

There are more than 8 million small businesses in China the research report states, about 60% will be buying OCs creating a huge potential market. Back in February Nokia chief stated that China could be the largest mobile phone market in three years. Whether PC market in China will grow in such rapid pace is not clear but current sales trends surely show promise.

Chinese businesses are showing strong demand for laptop PCs. Thomas Wang, an analyst with Analysys, back in August said the Chinese laptop market "will maintain an overall growth rate of more than 20 percent in 2005."

Analysis is forecasting more than 3.372 million laptops will be sold in China this year, up from 2.375 million units in 2004. The firm is projecting 9.6 million laptops will be sold in China during 2009.

After purchase of IBM's PC business last year Chinese Lenovo became world's third largest PC maker. Growth in PC sales in its home market clearly is providing a competitive advantage for the company.

Posted by admin at October 27, 2005 06:11 AM

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