PC use, manufacturing, sales surge in China

Personal computers (PCs) are making enormous gains in China in manufacturing technology and overall use. As a result, the nation’s PC sales were expected to be among the world’s largest and fastest growing in 1998.

China sold 3.2 million PCs in 1997 and was projected to sell more than 4 million in 1998. Following a slow start in the early 1990s, China’s PC market swelled significantly in the past two years. Annual sales growth has been over 50% since 1995. Two of China’s largest cities, Beijing and Shanghai, lead the country in PC penetration.

A report by a Chinese market research company, HuiCong (Beijing, China), predicts China’s PC market will continue to grow at more than 40% annually during 1998-99, expanding the total market to 8.3 million units by 2000. The report adds China’s PC market will also maintain its momentum and continue to grow as the 21st century begins.

Expanding markets

Chinese PC makers dominate the nation’s market (see table) with more than a 60% share. Domestic PCs are widely accepted by Chinese consumers for their reasonable cost and serviceable performance. In recent years, most Chinese PC makers started gathering momentum to develop new products capable of competing internationally.

Experts report that China’s domestic PC industry has kept pace with global progress in research and development, applications, and marketing. They add that Chinese companies are leading in many market sectors by offering new concepts or applications for consumers.

As a result, a balanced market network is taking shape in China. Sales centers are expanding from large, often coastal cities, such as Beijing, Shanghai, and Guangzhou, to more inland cities like Wuhan, Xi’an, and Chendu.

China’s growing PC sector is also assisted by development of the nation’s software industry. China’s software market was expected to reach more than Y (Yuan) 30 billion (U.S. $3.61 billion) in 1998. This was expected to act as a major catalyst, further increasing PC sales in China.

Share of PCs sold in ChinaDuring first half of 1998

Made in
Units sold
% of market share

Source: Control Engineering with data from Beijing Research Institute of Automation for Machinery Industry and HuiCong, a market research company.

China
1.28 million
71.4%

Other
0.51 million
28.6%

Popular PC Specifications in China

Manufacturer
Pentium II Product name
Hard diskprocessor (MHz)
(GB)
Bus Video card
architecture

Editor’s note: All manufacturers offer 440 LX chip sets and 32 MB internal storage, except for Don-Chen’s Aiddy 8450E, which features a 440 BX chip set and 64 MB internal storage. All also offer 15-in. monitors, except Don-Fa’s P 113032, which features a 14-in. monitor.Source: Control Engineering with data from Beijing Research Institute of Automation for Machinery Industry and HuiCong, a market research company.

Legend Co.
Bon-Yu 1000
266
3.2
2 X AGP
NLX

Fa-Zen Co.
Can-chi 6000
266
3.2
AGP
ATX

Don Chen Co.
Aiddy 8450E
350
4.3
T 1740
T-Bus

Don-Fa Co.
P 113032
300
4.3
AGP
ATX

Lan-Cho Co.
Jin Bo series
266
2.1/3.2
PCI
ATX

Great Wall Co.
G.W. series
266
4.3
AGP
ATX

Li-Da Co.
Ju Fen series
266
4.3
PCI
ATX

Xia-Shin Co.
Jin-Je series
300
3.2
S3 Viger
ATX

Author Information

Zhang Sie Lin, Beijing Research Institute of Automation for Machinery Industry, China

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