China PC Market Grew by 4% in 4Q10, Says IDC 

BEIJING, CHINA – January 28, 2011 – Preliminary results from the International Data Corporation (IDC) China PC Tracker show that the China PC market grew by 4% year-on-year in the fourth quarter of 2010 (4Q10), falling short of IDC's initial forecast by 8%, amid signs of slow-down in the market.

According to Antonio Wang, research manager, Computing Systems Research at IDC China, the slow-down was yet another indication of a short-term market adjustment in response to the recent macroeconomic developments there. A cooling Chinese economy, lack of drivers to sustain further notebook adoption, and rapid growth of media tablets were the top reasons that contributed to the relatively staid volumes this quarter. However, the fourth quarter result is not expected to alter the long-term outlook for sustained growth, as the market remains fairly unsaturated and is expected to see a strong recovery in the second half of 2011.

In the worldwide PC market, the top four leading companies have not changed position in the past year. The companies that have remained at the top are HP, Acer, Dell, and Lenovo. In a related event, Lenovo announced plans of taking a controlling stake in one of Japan's top PC makers, NEC. The deal will see Lenovo take a 51% stock ownership in NEC's PC business, as it continues to push ahead with its globalization strategy.

"The recent slow-down in the China PC market has provided greater impetus for Lenovo to shift its focus towards its international business, as it tries to catch up with its global rivals there," said Kitty Fok, vice president for End-User Research & Statistics Group and Greater China Research at IDC.

Indeed, as Lenovo's market share in the local market approaches a new high, its next wave of growth will have to come from overseas markets. Its partnership with NEC will not only allow it to expand to Japan, but also to leverage NEC's product development capabilities to better compete with its rivals globally.

Table Notes:

Some IDC estimates prior to financial earnings reports.

Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.

PCs include Desktops, Portables, Mini Notebooks and do not include handhelds and x86 Servers. Data for all vendors are reported for calendar periods.

IDC's China Monthly PC Tracker is designed to provide more frequent and timely tracking of China PC market, which is very important for PC vendors that are targeting the rapidly growing China market.

For more information about the IDC China PC Tracker, or to subscribe to one of IDC's Tracker products, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

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