According to research of the Taipei-based Market Intelligence & Consulting Institute (MIC) conducted as part of the ITIS project, the Taiwanese desktop PC industry is expected to reach a shipment volume of 10.03 million units in the first quarter of 2009, representing a sequential decline of 6.9% and a year-on-year decline of 8.4%. In the fourth quarter of 2008, the Taiwanese industry reached a shipment volume of 10.77 million units, declining 10.5% sequentially and 12.5% year-on-year.
Looking at global desktop PC shipment in the fourth quarter of 2008, the market was affected by rising unemployment and more conservative spending in the end-market. Meanwhile, at the supply-side, the following factors impacted desktop PC shipment: first, due to the tightening of credit, some small- and medium-sized distributors did not have enough capital to maintain operations. Second, some brand-name vendors aggressively conducted checks of inventory levels from November, and they started to clear inventories which were considered too high. Third, with the DTR (Desktop Replacement) effect accelerating, brand-name vendors adjusted resource allocation and product strategies. Overall, due to the tightening of credit markets and brands' conservative stance in terms of releasing orders, Taiwanese desktop PC shipment volume experienced a double-digit decline in the fourth quarter of 2008.
The enterprise market had a relatively stable shipment performance in the second half of 2008 as it was less affected by the economic downturn and the DTR effect than the consumer market. As for shipment destinations of Taiwan's industry, even though European and US markets are at the heart of the financial crisis, their share of total shipment did not decline as expected. Many vendors chose to reduce shipments in emerging markets due to the increasing transaction risks. For example, in India and Russia currencies fluctuated significantly, increasing risks associated with these fluctuations. Meanwhile, in the Brazilian market, although the country's currency rebounded, insurance companies lowered the amounts for which they accepted insurance as a result of global credit shortages. This made brand-name vendors even more cautious in shipment control.
More information can be found in the following MIC report: The Taiwanese Desktop PC Industry, 1Q 2009
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About MIC
Market Intelligence & Consulting Institute (MIC), based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english
About ITIS
The ITIS (Industry and Technology Intelligence Services) project is managed by the Department of Industrial Technology of Taiwan's Ministry of Economic Affairs. As part of the project, research is conducted in a variety of fields, including the ICT sector. The project serves both the public and private sector.