Computing
The Taiwanese Desktop PC Industry in 1H 2001
September 01, 2001 / Lina Li
0 Page, Statistics Report
US$490 (Single User License)

Abstract

The first half of 2001 was a bleak period for the IT industry. An increase in inventory reflected the unhealthy state of the economy. As the global economic environment continued to worsen, companies became more conservative in their IT spending. Additionally, companies were being forced to close plants, lay off workers, and cut salaries to reduce operating costs. Consumer spending was reduced by the impact of the poorly performing economy and price wars between makers that encouraged consumers to wait and see if the price would further. Under these circumstances, the mature European and American markets either stagnated or experienced negative growth; emerging markets continued to grow, but more slowly than in 2000. The leading US PC vendors have traditionally been the Taiwanese desktop PC makers' leading OEM customers. Weak demand in the US market was bound to affect the overall shipment performance of the Taiwanese makers. This report analyzes the development of the Taiwanese desktop PC industry in the first half of 2001 in terms of production volume and value, CPU types, business types, production locations, shipment destinations and product appearance. A forecast of developments in the second half of 2001 is also given.

Given the circumstances described above, the leading PC vendors were bound to suffer a negative impact. They have experienced a marked fall in sales. Although this will encourage them to speed up their withdrawal from manufacturing, which will be a boon for Taiwan's OEM businesses, weak demand worldwide will ensure that the benefits from this change are not felt for some time. MIC predicts that total Taiwanese desktop PC shipment volume in 2001 will reach 28.3 million units, representing a growth of 2.4%. As far as production value is concerned, the continuing fall in ASP will result in negative growth of 9.2%. In 2002, the global economy should start to pick up slightly, and the benefits from increased outsourcing of production on the part of the leading PC vendors will begin to make themselves felt. MIC therefore anticipates that in 2002 the Taiwanese desktop PC industry will have total shipment volume of 31.5 million units, representing growth of 11.2% on 2001. MIC anticipates that Taiwanese makers will be able to improve their global logistics systems, increase the percentage of total shipment volume accounted for by whole-system shipments, and provide customers with more value-added, thereby achieving higher profits. MIC forecasts that the Taiwanese desktop PC industry's production value will grow by 8.5% in 2002 (see Figure 9).

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