Annual Report Abstract                                |Back|
2000-2001's Annual Report for
China's Computer Market Summary
(Abstract)


Viewpoint

1. Fast growth under the unbalanced demand and supply will be a general trend of the development of the computer market
2. A software-based industry structure will be the basic direction of the development of the computer market
3. The trend of technical development features digitalization, online networking access, intelligence, high-performance
4. There is a fast growth in the small and medium-sized enterprises and individual consumption markets; the industrial market is the principal part.
5. The development trend of consummations will focus on the masses, region, personality and impressibility
6. The focus of competitions is shifting from technology and product to applications and service.
7. The Internet service will become the new trend in the consumer-based computer products and services.


I. An overview of the macro-economic environment of the computer market

1. Macroeconomic environment
a. International environment
b. Domestic environment
2. Industrial environment
a. International environment
b. Domestic environment
3. The development of technology
4. Policy and Regulation
a. The 10th five-year plan
b. Policy
c. Regulation

II. Microanalysis of the computer market 2000

1. An overview of the market
a. Market size
b. Market structure
c. Market characteristics
2. Demand analysis for the computer market in China
a. Analysis of the aggregate demands
b. Characteristics of aggregate market demands
c. Regional distribution of market demands
d. Market Demands for industrial applications and the characteristics
e. Market demands for individual consumers and the characteristics
3. Supply Analysis of the computer market in China
a. Analysis of aggregate supply
b. Characteristics of supply
4. Equilibrium and competition in computer market in China
a. The supply and demand equilibrium
b. Price level
c. Overheated competition

Chapter Highlights
This chapter provides information collected by CCID in its track survey of the overall computer market in 2000; including the sales volume, growth rate and leading manufacturers whose products hold the highest market share, hardware, software and information service and the feature and size of the overall computer market. It also probes into the supply and demand in China's computer market from an economic viewpoint. Based on a steady growth rate, the investment demand shows strong income flexibility while consumption demands show strong price flexibility; while the market supply features a combination of flexibility in the total amount of supply and rigidity in the structure of supply. Overheated competition is obvious in the category of host products. Import & export of computer products have an important influence on the balance for computer marketplace in China.

III. Imports of Computer products 2000

1. Overall condition and feature of the imports of computer products
2. Export trade of computer products
a. Exports of major computer products
b. Structural analysis of the exports of computer products
3. Import trade of computer products
a. Imports of major computer products
b. Structural analysis of the imports of computer products

Chapter Highlights
In year 2000, imports and exports of computer products have kept the momentum of rapid growth, the total import and export volume reaches 280.8 hundred million US dollars, the gross imports register 105.5 hundred million dollars, the gross exports are 175.3 hundred million. Growth rates of both imports and exports are higher than those of national foreign trade and electronic products. There is also an increase in its proportion of nation foreign trade and electronic products, becomes a backbone industry. The report also incorporates the in-depth insight of the market by products/the structure of imports and exports.

Ⅳ. Structural Analysis of the Computer Market 2000

1. Market barriers
a. Hardware market
b. Software market

2. Degree of concentration and competitions in the market
a. Desktop PC: The fragmented market with multiple competition
b. Notebook PC: Competition among few powers
c. Printer: from tripartite confrontation to extensive rivalry
d. Display: dominance of foreign brands and rivalry of big powers
e. Software: a mix of oligarchic monopoly and competition.
3. Cross-infiltration
a. Infiltration from other industries to computer industry
b. Infiltration among segments of computer industry group
c. Infiltration from computer companies into non-IT field
d. Integration of IT household appliance with computer products

Chapter Highlights
It helps us have a thorough grasp of their controls of the market through intensive analysis of the barriers checking the entry of the manufacturers into the software and hardware market. Degree of concentration and competitive situation for different products are notebook PC and PC servers. Printers and scanners fall into the typical category of competition between a few big powers. There is a moderate concentration in the desktop PC market. The entry barriers consist of policy, technology, cost and the resistance of the same enterprises. The report also elaborates on these changes

V. Behavior and competitive performance in the computer market 2000

1. Changes of competitions
a. Price war
b. Competition in market segments based on "new concepts"
c. Product competition highlighting personalization, network-enabled
capability and fashion
d. Service competition with the keynote to shape service brands
e. Channels competition
2. Intensified competition to contend for the small and medium-sized enterprise market
3. Competition performance
a. Hardware market: limited profit margin
b. Software market: bright prospects and a batch of problems
c. Case study

Chapter Highlights
This chapter provides a general assessment of the effects of corporate competition behaviors. Competitions have enhanced from the one fold price war to a multi-level and full-scale rivalship.

VI. Comparison of the Computer market in the 8th five-year plan and the 9th five-year plan period

1. Overview
a. Economic environment during the 9th five-year plan period
b. Development of the computer industry during the 9th five-year plan period
2. Development of the computer market in the course of the 9th five-year plan period
a. Development of major hardware markets during the 9th five-year plan period
b. Development of the software market during the 9th five-year plan period
c. " Development of the information service market during the 9th five-year plan period.

Chapter Highlights
During the period of the 9th five-year plan, overseas manufacturers surged into China to build new computer works, a multitude of accessory-manufacturing factories also emerged accordingly in China to facilitate the situation. This has stimulated the development of the computer industry in China. However, China doesn't witness a smooth development in the computer industry during the period of 9th five-year plan. In 1998, due to the unfavorable macro-economical environment in China and worldwide, the growth rate of the computer industry declined to the lowest of 17.9%. With the upturn of economic conditions,it quickly mounted to 36.6% in 2000.

VII. Future development of the computer market 2001-2003

1. Factors influencing the overall computer market 2001-2003
a. Macro environments
b. Micro environments
c. Technical conditions
2. Prevailing trends in the development of computer market 2001-2003
a. Fast growth under the unbalanced demand and supply will be a general trend of the development of the computer market
b. A software-based industry structure will be the basic direction of the development of the computer market
c. The trend of technical development features digitalization, online networking access, intelligence, high-performance
d. There is a fast growth in the small and medium-sized enterprises and individual consumption markets; the industrial market is the principal part.
e. The development trend of consummations will focus on the masses, region, personality and impressibility
f. The focus of competitions is shifting from technology and product to applications and service.
g. The Internet service will become the new trend in the consumer-based computer products and services.
3. Forecasts of computer market 2001-2003

Chapter Highlights
The computer market will keep a fast growth in the future, the market structure will be rationalized, and the product structure will be software-specific - that is the proportion of hardware will progressively drop while those of software and service will increase. The technical development is moving toward a digitized, network-enabled and intelligent way with high-performance. Consumer marketplace is people and region oriented, with its emphasis on personalization and experience. The focus of competition turns from products and technology to application and service.


Data

Figure 1 1999-2000 Gross production of China's computer industry

Data Source:CCID

Figure 2 Year 1996-2000 overall growth of computer market

Data Source:CCID