The Greater Chinese desktop PC industry turned in a strong performance in the third quarter of 2003 as shipment value and volume registered double-digit growth over the same period in 2002. In a sign that the PC market is recovering, desktop PC shipment volume climbed to unmatched levels since 2001.

Aided by steady OEM outsourcing and substantial shipment growth for mini- barebones, the shipment volume of the Greater Chinese desktop PC industry reached 7.5 million units in the third quarter of 2003, registering 18.9% year-on-year growth, and a sequential rise of 14.4%. The high gains show that the Greater Chinese desktop PC industry outperformed the global PC market in the third quarter.

Shipment value grew 20% sequentially to reach US$2.1 billion in the third quarter of 2003, or 26.2% year-on-year growth, compared to US$1.7 billion in the third quarter of 2002. Furthermore, shipment value recorded the second-highest growth since 2001, only slightly outstripped by the fourth quarter of 2002. ASP (Average Selling Price) rose 4.9% to US$282 in the third quarter, from US$269 in the second quarter because of the peak season for old PC replacements in the third quarter. A higher share of barebone and full system shipments by motherboard makers also pushed ASP up.

With the peak-buying season stimulating demand, stock-ups in the clone market are proceeding unabated, and with demand from OEM customers makers are actively filling up material inventories. Consequently, the Greater Chinese desktop PC industry is expected to enjoy shipment volume growth in the fourth quarter of 2003. Motherboard makers have been promoting mini-system barebones at the Computex show during late in the third quarter.  Gradual market acceptance and increased manufacturer involvement in these products will likely allow shipment volume to reach a new peak.