Raising income and the government encouraging household consumption make China the biggest battlefield for PC giants such as Dell, Hewlett-Packard and Lenovo.
Amit Midha, head of Dell China, said: "This is a fight for user loyalty. The timid ones are not suitable for this battle, and this is a protracted battle."
At first glance, the figures are very attractive. China is the second-largest PC market after the United States. It is expected that within 10 years, China will surpass the United States and become the world's largest PC market.
However, as we go further, we will find another scene. In the third quarter of this year, the average selling price of Chinese PCs was 604 US dollars, which is 18% lower than the average price of US 739 US dollars.
Shenzhen SEG computer can glimpse the low price of Chinese computers. The crowds are thrashing here, shops are everywhere, piles of pirated software and hello kitty dolls are gloomy piles of desktop processors, and these processors cost as low as under $150.
A seller said: "What do you want, we can do it for you." Behind him, many technicians assemble computers under fluorescent lights. Because they are assembled on the spot, sellers here can make computer prices very expensive. low.
According to Huang Weiming, CFO of Lenovo, besides relatively cheap office and shop rentals in China, users prefer low-end products as a reason for the low prices of Chinese computers.
He said: “Generally speaking, the average selling price of computers in emerging market countries is lower, because these markets have strong demand for low-end configuration products. In mature markets, when the economy is strong, the market obviously has a marked increase in demand for high-price products. ."
The popularity of low-priced PCs has stimulated Chinese PC makers to turn their attention to large corporate customers, such as hospitals and banks. These units also purchase data servers, which are more profitable products for manufacturers.
Dell's Midha believes that Chinese PC users spend less money on each computer than Western users because they are not willing to spend more on peripherals and software.
In 2009, in the United States, users spent about US$1.05 each on a PC, and purchased peripheral products. This increased PC company’s net profit.
In China, the sales of printers and other peripheral equipment have not improved the performance of PC companies. Many Chinese users like to use the ink supply for street printers to supply printers with consumables.
Despite this, PC giants still said they would stay in China for a long time and China is at the core of its future development plan.
The head of Dell China, Midha, announced on Tuesday that it plans to invest US$250 billion in China for procurement and investment in the next 10 years. He said: “China suddenly became the center of our development.â€
Hongji, the world's second-largest PC giant, said that in the next five years, the Chinese market will account for 20% of the company's total sales. Acer believes that the Tablet PC and the alliance with Founder Computer will help them develop well in the Chinese market.
Gartner Research analyst Lillian Tay said: "In the long run, there are only three or four PC brands in China that can survive. It's really a game that wins by number. Once the big manufacturers flood the market, Small vendors will find it difficult to compete."
Chinese PC sales expected to exceed 65 million this year
This year, China’s PC sales are expected to exceed 65 million. However, how much money can these computers sell?