cloudalps (hidden peaks)

High Tech Economics – implications from a global perspective.

China – world’s biggest market for Cars, Mobile Phones and now: PCs!

This headline has much deeper implications than we might think at first because China did not just become the largest buyer of PCs (18.5m units in Q2CY2011 per IDC) but other markets lost some interest in commodity computers (US: 17.7m PCs in Q2CY2011)! And yes, HP’s aim to get rid of its PC business entirely is very much related to this breakthrough change: HP lost its shine in China and therefore critical market share.

While many Western consumers spend the extra money on iMacs, MacBooks or iPads, Apple’s premium price design products are not so popular in China and Asia in general. For most Asian buyers, if they get a PC it will be their first or will strictly be used for business, not pleasure or show off. The growing number of affluent citizens has however led to growing interest in tablets and therefore a slight slowdown in PC sales growth according to Lenovo’s CEO.

It is an important insight to understand that the growth potential for technology products in the Eastern hemisphere will not exactly be for those offerings that are most popular in the West at the same time. The actual upside is for PCs (mostly from Lenovo or Dell), Android phones, cloud software and is driven by globalization: the crossing of certain barriers of spendable income combined with the ambition to achieve specific “firsts” like getting kids through high school, trading items, booking vacations, launching a business.

This trend will be disruptive to many providers of technology goods since it underlines a different sort of growth in markets outside the Western hemisphere.

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