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For the complete report, get in touch with us at : [email protected] The report begins with an introduction section comprising an overview of the personal computer (PC) sector including their usage in various aspects of modern life followed by brief information on various types of personal computers including the Desktop, Laptop, Notebook, Sub-notebook, Rugged PC, Netbook, Tablet PC and mobile PC devices. The market overview of the global personal computer market provides data on the rise in global PC shipments. Further, the report gives a detailed description of the domestic PC market, along with the industry/market size in terms of transaction volume and its growth. This section provides a better understanding of the overall personal computer market. Factors driving the growth of PC market in China covered in the report include increasing internet usage, huge consumer base, rising income, accelerating urbanization and changing lifestyle, untapped market potential, reduction in import duties, growing consumer goods retailing, growing online retailing and growing computer education are providing ample opportunities to the market. Players operating in the market also face challenges which are impeding their development and growth. Major challenges identified include rise in use of smartphones, rapid technology obsolescence, rapid price drops and low profit margins, challenges in overseas expansion and low IT spending. The report also provides the government support policies in the 12th Five Year Plan, which is aimed at developing information technology to support the expansion and advancement of domestic PC market in the future. Emerging trends in the PC market include miniaturization, rising popularity of tablet PCs, emerging netbooks and PC vendors move towards smartphones. The competition section outlays the competitive landscape of the PC industry in China briefing about the domestic and foreign players operating in the market. This section provides a ranking of the players based on the revenue and profits followed by a 3 dimensional analysis of key players’ revenues, profits and market capitalization. The report also features brief profiles of major domestic and foreign players in the market and a snapshot of their corporation, financial performance, business highlights and their product portfolio, providing an insight into the existing competitive scenario. Some of the key statistics or factors impacting the PC market in China covered in the report includes market size, PC sales figures, internet population and penetration, consumer base, per capita urban disposable income, urbanization rate, online retail sales, mobile internet users, Smartphone sales, tablet PC growth, market share of players etc. Key takeaway section summarizes the entire market in terms of opportunities, trends and challenges persisting in the PC market in China.
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Personal Computer Market – China
January 2012
2PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Executive Summary
Market
Drivers & Challenges
Competition
PC market in China has been demonstrating rapid growth and development over the past few years
China’s PC market will continue to exhibit speedy growth with sales volume growth of ~x % CAGR from 20‐‐ to 20‐‐
Trends
Miniaturization
Rising popularity of tablet PCs
Emerging netbooks
PC vendors move towards smartphones
Drivers:‐ Increasing internet usage ‐ Huge consumer base‐ Rising income‐ Accelerating urbanization and changing lifestyle‐ Untapped market potential‐ Growing consumer goods retailing‐ Growing online retailing ‐ Growing computer education
Government Initiatives
Promotion of broadband and home appliances
Promotion of E‐government and public cultural service system
Increase education level in rural areas
Challenges:
‐ Rise in use of smartphones
‐ Rapid technology obsolescence
‐ Rapid price drops and low profit margins
‐ Challenges in overseas expansion
‐ Low IT spending
International players like Company 1 and Company 2 are boosting their investment in China, indicating tougher and more fierce competition for the domestic players
Some of the major domestic players in the market are Company 3, Company 4, Company 5 and Company 6
3PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
•Introduction
•Market Overview
•Drivers & Challenges
•Government Initiatives
•Trends
•Competition
•Key Takeaways
4PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
Introduction
•Defining the product
Personal computers are used for various purposes and has become an integral part of present day life
•Usage 1
• Usage 2
• Usage 3
• Usage 4 Sub‐point 4
• Usage 5
• Usage 6
Usage
SAMPLE
5PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
Various kinds of personal computers are available, such as desktop PCs…
• aaa
• bbb
Notebooks • ccc
Laptop
Desktop
Sub‐Notebooks • ddd
Types of PCs (1/2)
SAMPLE
6PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Global PC market is intensely competitive with marginal product differentiation and varied market environments
Rise in Global PC ShipmentsGlobal PC Market – Overview
Note: Excluding Tablet PC sales
• In Q2 20‐‐, worldwide PC shipments volume reached ~x
mn units, y % y‐o‐y growth
• In Q3 20‐‐, Notebooks grew p% and desktops increased
q%, but netbooks declined r% from the same period last
year
PC market expansion has been primarily driven by the rise in
popularity of pads with sales tripled in Q3 20‐‐ up from Q3 20‐
‐
0
20
40
60
80
100
mn units+w%
Q2 20‐‐
a2
Q2 20‐‐
a1
Market Size and GrowthDomestic PC Market – Overview
• China is expected to lead the global PC market by 20‐‐
• China is gradually emerging as a leader in PC market ,
which reflects the increasing affluence of emerging
markets, as well as the comparative stagnation of more
mature regions
Company 1, the Chinese PC market leader, has directly
benefited from the rapid growth in the PC market, accounting
for g% of global shipments and ranking hrd after Company 2
(i%) and Company 3 (j%) in Q3 20‐‐
0
50
100
150
200
mn units
+x%
2015e
b3
2010e
b2
2005
b1
7PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Drivers & Challenges – Summary
Growing Consumer Goods Retailing
Drivers
Increasing Internet Usage
Huge Consumer Base
Rising Income
Accelerating Urbanization and Changing Lifestyle
Untapped Market Potential
Reduction in Import Duties
Growing Online Retailing
Growing Computer Education
Challenges
Rise in Use of Smartphones
Rapid Technology Obsolescence
Rapid Price Drops and Low Profit Margins
Challenges in Overseas Expansion
Low IT Spending
8PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Internet popularity assumes massive popularity, providing huge impetus to the growth in PC market
•Finding 1 Sub‐finding 1
• Finding 2 Sub‐finding 2
Sub‐finding 2’
• Finding 3
Increasing Internet Usage Impact
Heading 1 Heading 3Heading 2
0
200
400
600
800
mn
+x%
20‐‐e
t5
510
b5
20‐‐ Jun
t4
300
b4
20‐‐
t3
277
b3
20‐‐
t2
213
b2
20‐‐
t1
157b1
Segment a
Segment b
0
20
40
60
80
100
120
%
+y%
20‐‐e
70
d5
20‐‐ Jun
48
d4
20‐‐
45
d3
20‐‐
35
d2
20‐‐
27d17
Segment a
Segment d
0
20
40
60
80
+y%
+z%
+x%
Product 3
e6e5
Product 2
e4e3
Product 1
e2e1
20‐‐ 20‐‐
9PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
• Finding 1
• Finding 2
• Finding 3
High consumer base is propelling the growth of the PC market in China
Huge Consumer Base Impact
Heading 4
Total Population in 20‐‐: ~y mn
d%
b%
c%
a%
>4515‐29 30‐440‐14
Large target market‐above x% of the total
population
10PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Rising income and reduced prices to provide new growth opportunities for PC manufacturers
•Finding 1
•Finding 2
Sub‐finding 2
•Finding 3
•Finding 4
Rising Income Impact
Heading 5 Heading 6
0
500
1,000
1,500
2,000
USD
a1
+x%
Jan‐Jun 20‐‐
a2
Jan‐Jun 20‐‐0
10
20
30
40b1
‐y%
20‐‐e
b3
20‐‐
b2
20‐‐
no. of weeks
11PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Accelerating urbanization coupled with changing lifestyle boosts PC sales
Accelerating Urbanization and Changing Lifestyle Impact
Heading 7
• Finding 1
Sub‐finding 1
• Finding 2
Sub‐finding 2
0%
20%
40%
60%
80%
100%
mn
20‐‐e
t4
b4%
a4%
20‐‐e
t3
b3%
a3%
20‐‐
t2
b2%
a2%
20‐‐
t1
b1%
a1%
Segment a Segment bAnalysis 1
12PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Low PC penetration provides significant opportunity for further growth
Untapped Market Potential Impact
Heading 8
• Finding 1
Analysis 2
Reduction in Import Duties Impact• Finding 2
x% y%
Before 27th Jan 20‐‐ After 27th Jan 20‐‐
0
50
100
%
Country 6
a8
Country 5
a5
Country 4
a4
Country 3
a3
Country 2
a2
Country 1
a1
Import Duty
13PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Rapidly growing retail industry facilitates the growth of PC market
Growing Consumer Goods Retailing Impact
• Finding 1
Sub‐finding 1
• Finding 2
Growing Online Retailing Impact
Heading 9
Heading 10
Analysis 3
0
100
200
300
USD bn+x%
Oct 20‐‐
a2
Oct 20‐‐
a1
0
100
200
USD bn
+y%
20‐‐e
b4
20‐‐e
b3
20‐‐e
b2
20‐‐
b1
14PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Growing computer education pushes further PC usage in China
• Finding 1
• Finding 2
• Finding 3
• Finding 4
Growing Computer Education Impact
Heading 11 Heading 12
USD bn
+x%
20‐‐e
t2
g2%f2%
e2%
d2%
c2%b2% a2%
20‐‐
t1
g1%f1%e1%
d1%
c1%b1%
a1%h
g
e
d
c
b
ai1%
j1%
m1%
l1%
k1%
j
i k m
l
15PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Impact
Heading 13 Heading 14
Non PC‐devices becomes increasingly trendy, providing stiff competition to the PC market
Rise in Use of Smartphones
• Finding 1 Sub‐finding 1
Sub‐finding 1’
• Finding 2 Sub‐finding 2
• Finding 3
0
100
200
300
400
mn
20‐‐
+x%a2
20‐‐
a1
0
20
40
60
80
100
mn units
b1
+y%
20‐‐e
b3
20‐‐
b2
20‐‐
16PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Lack of established Chinese brands restricts global expansion
Challenges in Overseas Expansion Impact
• Finding 1
• To achieve global recognition, domestic companies must focus on following categories:
Heading 15
Category 1
Category 4
Category 3
Category 2
Analysis 4
0
20
40
60
80
%
Country 3
a3
Country 2
a2
Country 1
a1
17PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Summary – Trends
PC Vendors Move towards Smartphones Miniaturization
Emerging Netbooks Rising Popularity of Tablet PCs
Trends
18PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Tablet PC market in China will become more mature in the coming years
Rising Popularity of Tablet PCs
Analysis 5
Heading 16• Finding 1• Sub‐finding 1
• Finding 2 Sub‐finding 2
0.0
0.5
1.0
1.5
2.0
2.5a2
20‐‐
a1
mn units
20‐‐e
+x%
Date Description
Jan 20‐‐ • Event 1
Mar 20‐‐ • Event 2
Mar 20‐‐ • Event 3
Jul 20‐‐ • Event 4
19PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
PC vendors need to adopt strategies to face the growing competition in the Chinese PC market
•Finding 1
Sub‐finding 1
• Finding 2
Sub‐finding 2
Competitive Landscape – Market ShareCompetition – Overview
Pre‐requisite to become a successful PC vendor
• Point 1
• Point 2
• Point 3
• Point 4
• Point 5
n%
m%l%k% j%i% h%g%f%
e%d% c%
b%
a%
Others
Company 13
Company 12
Company 11
Company 10
Company 9
Company 8
Company 7
Company 6
Company 5
Company 4
Company 3
Company 2
Company 1
20PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Domestic Competition – Summary (1/2)
1,238.8
2,769.1
9,189.4
16,604.8
36.5
72.7
308.6
129.4
0 5,000 10,000 15,000 20,000
Company 2
Company 1
Company 3
USD mn
Company 4
Net Profit
Revenue
Revenue and Profit for Major Domestic Companies of 20‐‐
21PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
0
50
100
150
200
250
300
350
400
450
13,00012,00011,00010,0009,0008,0007,0006,0005,0004,0003,0002,0001,0000
c
b
a
d
17,00016,00015,00014,000Revenue
18,000
Net Income
Domestic Competition – Summary (2/2)
Size of the Bubble represents Market Capitalization in USD mn
Company 4Company 3Company 2Company 1
22PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
Major Domestic Players in the Market (1/5)
Headquarters Province 1
Founded 20‐‐
ProductsProduct 1, product 2, product 3, product 4, product 5, product 6, product 7, product 8
Key People Person 1– President
Company Snapshot: Company A
Business Highlights
Corporate Information Financial Performance
Profit/Loss
Revenue
0
500
1,000
1,500
0
10
20
30
40
RevenueUSD mn
Profit/LossUSD mn
20‐‐
a4
20‐‐
a3
20‐‐
a2
20‐‐
a1
• Company engages in the manufacture and sale of computer and other electronic products in country 1and internationally
• In Oct 20‐‐, Company A. entered into an agreement on equity transfer to acquire x % stake in company b from company c for ~ USD y mn
• In Apr 20‐‐, company announced that the company's wholly owned subsidiary, a city 1‐based manufacturing company, will transfer a z % stake in a city 1‐based technology development company to an information industry holdings company, at USD p mn
• In Dec 20‐‐, company announced that it divested a x % stake in a city 2‐based computers company to a city 3‐based digital company, at USD q mn
23PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
SAMPLE
PC market has experienced rapid growth and China is expected to be the world’s largest PC market by 20‐‐PC industry has become a leading industry in China's national economy and is playing a guiding and supporting role in
the overall national economic situation
Increasing internet use and rising prosperity which has resulted from accelerating urbanization, acts as a major driver for the growing demand of personal computers in the country
Opportunities in the Market
Market SizeInitiatives Taken by
Players
ChallengesLow market penetration and reduction in import provides scope for the PC vendors
Growing retail industry coupled with increased computer educationsupports the future prospects of the PC industry
• Rise in use of smartphones
• Rapid technology obsolescence
• Rapid price drops and low profit margins
• Challenges in overseas expansion
• Low IT spending
Players are taking steps to upgrade the quality of their services
Mini PCs, Tablet PCs, netbooks are being added to the product portfolio to sustain competitiveness
0
50
100
150
200
mn units
a2
a1
20‐‐
+y%
20‐‐e
a3
20‐‐e
Players need to focus on global expansion by strengthening their consumer brand and products
24PERSONAL COMPUTER MARKET IN CHINA 2012.PPT
Thank you for the attention
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Personal Computer Market ‐ China report is a part of Netscribes’ Information Technology Industry Series. For more detailed information or customized research requirements please contact:
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