This is the result of a delay in government IT spending, Smart ID Group managing director Pitchyen Hongpakdee said last week.

The overall IT product market - both hardware and software - was worth about Bt300 billion last year, 60 per cent from retail sales and the rest from government purchases.

"As far as I know, the government purchased no computers in the first quarter. So, there's a glut," the leading supplier said.

Pitchyen added that local manufacturers would go under due to tough price competition with international brands with better economies of scale and innovation.

Price competition might be so severe the price of a two-gigabyte thumb-drive will fall to Bt300.

In the past two years local brands accounted for 70 per cent of total sales. Their share is now 50 per cent.

Pitchyen still anticipates overall growth this year because the government has accelerated spending this quarter and demand for computers remains strong.

In the United States, there are one and a half computers for every person. Statistics show just one in every 10 people in Thailand owns a computer. That translates to attractive growth potential for both local and international manufacturers.

Meanwhile, Thai ICT Industry Association president Jumrud Sawangsamud said it was difficult to predict market growth this year due to the flagging economy.

However, he said it would likely decline from 15 per cent last year to about 10 per cent due to falling consumer confidence.

Chalida Ekvitthayavechnukul

The Nation