China PC Makers Make Great Leap

China-based PC manufacturers Legend Group Holdings Co. and Founder have reported doubled growth in the first half of 2000 over the same period last year, mainly at the expense of foreign competition, said an analyst at International Data Corp. (IDC) Asia-Pacific.

According to IDC research on sales of PCs and Intel-based servers in Greater China, Legend has maintained its No. 1 position with 107 percent growth in sales in the first half of 2000, capturing 20 percent of the total market share, up 7 percent from the same period last year.

However, the company achieving the most significant growth in the Greater China region was Founder, which witnessed a 127 percent increase in sales revenue, according to Kitty Fok, associate director for PC research at IDC Asia-Pacific.

Founder, as a result of the rapid growth, jumped from sixth place to No. 3 in terms of PC sales in Greater China, seizing 7 percent of the total market, Fok added.

Fok said Founder has done especially well in the home and education PC markets, in which the company recorded 281 percent and 189 percent growth, respectively.

"The growth of both mainland-based vendors has been achieved at the expense of their foreign competitors," she said, adding that IBM and Hewlett-Packard Co., which took second and fifth place, respectively, each has seen its market share drop by 1 percent.

Fok attributed the success of local PC vendors in the China market to factors including lower retail prices, achieved through lower margin and component costs; government support; better channel coverage; and better support and training services to users.

Acer, which ranked fourth in terms of PC sales in Greater China, managed to maintain its 6 percent market share mainly because of its stronghold in its home market in Taiwan, Fok said.

According to Fok, the total Greater China PC market was split as follows: 77 percent for China, 15 percent for Taiwan and 8 percent for Hong Kong. Looking ahead, Fok said the emergence of WAP (Wireless Application Protocol) devices and set-top boxes is not expected to slow down the sales of PCs in the region, especially in China.

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