Strained by Economic Downturn, Thailand's Market Holds Back on PC Spending, says IDC

Tech September 17, 2012 00:00

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According to IDC's Asia/Pacific Quarterly PC Tracker, the Thailand PC market experienced a slowdown in the first half of 2012 compared to the same period last year. A dip in both consumer and commercial spending brought the market down by 2 per cent year-on-year (YoY), with just 2 million unit shipments recorded in the second half of 2012. 
The PC market began 2012 strongly despite HDD shortages, resulting in an impressive YoY growth of 10 per cent in the first quater of 2012. In the second quarter however, shipments slumped by 12 per cent as a result of high inventory levels carried over from the previous quarter, delays in new platform arrivals, and weaker-than-expected market demand.
"Consumer sentiment was tepid throughout the first semester, and even the back-to-school season that typically sees a surge in spending did not meet the expectations of vendors," said Jarit Sidhu, Market Analyst for Client Devices Research at IDC Thailand. "Many vendors struggled to clear soon-to-be-obsolete products in their channels, and the delay in the arrival of new platforms was a further hindrance as it prevented them from introducing fresh models into the market." 
"On a positive note, investment in PCs within the SMB segment continued to gain traction as small organizations increased adoption of IT to cope with rising labor costs. Public sector spending also received a boost as government agencies began spending their budgets in the second quarter. Private enterprises, on the other hand, remained conservative due to the weak global and domestic economy," Jarit added.
The Thailand PC market has a tendency to pick up during the second semester, as commercial shipments in the thrid quater of 2012 are expected to peak due to seasonal trends, but consumer shipments are likely to show only marginal growth as vendors and their channels have been holding off on stocking heavily on existing products until the embargo on Windows 8 is lifted in late October. Thus, the market should see slight rebound in the forth quester of 2012 once Windows 8 is launched.
IDC has lowered its forecast for the 2012 Thailand PC market; it is forecasted to grow 8 per cent in 2012, compared with the previously expected growth of 13 per cent.