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  • Gartner Says Post Olympic Blues Unlikely to Hit ChinaÂ’s PC Industry

    (EMAILWIRE.COM, July 24, 2008 ) Hong Kong — Because of China’s massive economy, the Olympic Games are expected to have limited impact on China’s PC market, according to Gartner, Inc. Analysts said a post Olympics slowdown is unlikely as PC penetration is still low in many small cities and towns, so there are many opportunities to drive PC shipments in the country.

    With total Olympic investment approaching US$40 billion, accounting for 1.2 percent of China's GDP, a report by mainland-based Gartner analysts Simon Ye and Eileen He said the August event will have a lesser impact on China than it had on the host countries of recent Olympics. This conclusion is partly explained by the fact that China is already preparing to host the Shanghai World Expo and the Asian Games in 2010.

    “The Beijing Olympics will slightly influence PC shipments in the short-term instead of dramatically driving demand,” said Simon Ye, principal research analyst at Gartner. “However, the Olympic Games provide a great opportunity for PC vendors to gain long-term returns by brand building. The long-term impact of the Olympics on the PC market will be in pushing IT infrastructure development in China.”

    According to the report “Olympic Games to Boost China’s PC Market Somewhat”, the Olympics have generated important business opportunities in the construction industry through the building and upgrading of sports stadiums and other facilities, and also in service industries.

    “The latest scientific and technological developments will be widely applied in building, installing and improving venues and facilities. As basic hardware infrastructure, PCs will be widely used to upgrade the application level, and this will promote the technological progress of related industries,” said Mr. Ye.

    According to Gartner, PC shipments in the first half of 2008 are in line with forecasts and China will continue to maintain double-digit growth through 2012.

    “We believe the visible impact of the Olympic Games will last for four to five months, from the torch relay which started in May in China, and continue until one month after the event closes at the end of August,” said Mr. Ye. “The games themselves will have no influence on the PC market after the first quarter of 2009. Balancing all the positive and negative factors, as well as indicators such as population, PC penetration rate, increased tourism and promotions, we believe that the Olympic Games will contribute about 1.5 percent of growth to the 21.9 percent growth expected in 2008, and 0.2 percent of growth to the 21.3 percent forecast for the first quarter of 2009.”

    According to Mr. Ye, the factors driving China's PC market are the low PC penetration rates in many small cities and towns, high interest in PCs from China's younger generation and the fact that PCs are more affordable than ever before. Although inflation soared in 2008, the average income in China increased accordingly. PC prices are dropping and high inflation is actually stimulating PC purchases.

    "PCs are tied tightly with people's daily life and work,” Mr. Ye said.
    “Internet surfing, gaming and on-line entertainment have become popular leisure activities, while millions of small and mid-size businesses are emerging, with the PC being their main business tool."

    More information is available in the report ‘Market Trends: Olympic Games to Boost China's PC Market Somewhat’ available on Gartner's Web site at:
    http://www.gartner.com/DisplayDocument?ref=g_search&id=723707&subref=simplesearch.


    About Gartner
    Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day.
    From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the indispensable partner to 60,000 clients in 10,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 4,000 associates, including 1,200 research analysts and consultants in 80 countries. For more information, visit www.gartner.com.



    Issued on behalf of Gartner
    by EBA Communications Ltd
    For further information please contact:
    Howard Jones / Emma Jenkins (EBA): (852) 2537 8022
    (email: howard.jones@ebacomms.com / emma.jenkins@ebacomms.com)

    ###

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    Gartner
    Howard Jone
    (852) 2537 8022
    howard.jones@ebacomms.com

    Source: EmailWire.com

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