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PCs in oversupply

Released at: 15:32, 16/09/2015

PCs in oversupply

IDC report notes high stockpiles of PCs in second quarter but expects some relief in third quarter.

by Hoai An

In the second quarter of 2015 the total number of computers distributed in Vietnam stood at 424,000, down 10 per cent against the previous quarter and 9 per cent compared to the same period last year, according to market researcher the International Data Corporation (IDC). This is the largest decline since the second quarter of 2014. Oversupply has led to high inventories in the market, with a number of PC makers and distributors having to cut their stock in the second quarter before preparing business plans for the third quarter of 2015. Mobile devices also continue to put pressure on demand for PCs.

IDC also expects that the PC market will see positive results in the third quarter thanks to the new school year and increases in IT spending by businesses and the public sector. The increase in the price of certain types of PCs due to the devaluation of the VND, however, will also have a negative effect on retail sales. In general, Vietnam’s PC market will continue to face a number of difficulties this year but is expected to be more stable in 2016.

IDC also wrote that the market share of smartphones continued to increase, by 6 per cent, to 51 per cent of all phones distributed in the second quarter. This was the first time the number of smartphones surpassed the number of landlines, due to providers offering discounts for high-end smartphones as well as the import of cheap models.

The development of platforms such as Cloud, Mobility, Big Data, and Social Business led to strong growth in network equipment, including routers and switches, which was up 63.6 per cent compared to the previous quarter and 115.9 per cent against the same period last year. This growth came from service providers focusing on upgrading and expanding networks to meet the evolving needs of consumers and investment overseas by some of these providers.

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