Vietnam's PC Market Faces Pressure From Tablets and Smartphones
Vietnam's PC market grew significantly by 20.5% sequentially and 3.4% year-on-year (YoY) to reach 638,000 units in the fourth quarter of 2012 (4Q12), according to IDC's Asia/Pacific Quarterly PC Tracker.
In 4Q12, the consumer segment was flooded with stocks as some vendors tried to meet their year-end targets and avoid the Chinese New Year period.
According to Yen Phan, Market Analyst for Client Devices at IDC Vietnam, "PC vendors and distribution channels continued to face high inventory as purchasing power remained weak. Although the sell-in of Windows 8 helped to push new Ultra Slim offerings with competitive prices, consumers favored competitive tablets and smartphones instead."
As the consumer PC market continues to face pressure from tablets and smartphones in 2013, there is an urgent need for new PC models which are able to drive higher volume in the market.
"In 2013, the price of Ultra Slim models will need to decrease further in order to compete with attractively-priced tablets and smartphones, " explains Yen.
Despite seasonal purchasing from the education segment and unexpected public sector project fulfillments, the overall 4Q12 commercial segment remained weak. This was due to persistent uncertainty in the local economy.
Daniel Pang, ASEAN Research Manager, Client Devices at IDC Asia/Pacific says, "Vietnam's ongoing credit crunch has left most SMBs and even large enterprises facing financial difficulties which could impact IT spending in 2013."
Top Five PC Vendors in 4Q 2012
ASUS retained its lead in the market with 17.8% market share, reinforced by strong channel support and aggressive end-user promotions.
Dell retained second position with 15% market share as it pushed more shipments into both consumer and commercial channels through good channel management.
Acer took third position with 10.2% share of the market in 4Q12 as a result of activities to boost channel confidence and look for better margins.
HP fell one position to fourth in line with 9.1% market share. Although HP maintained its good performance in the commercial space, it continued to suffer from other MNCs' aggressive price competition in the consumer space.
Lenovo remained in fifth position with 6.2% market share, after bringing in more low-cost consumer notebooks to meet current market demands.