Bangladesh PC Market Back on Track, says IDC

Jakarta 17 September, 2008 – The Bangladesh PC market has rebounded, with an impressive 9.4% sequential growth in the Client PC market in 2Q08 and a 19.8% growth year on year, following last year's political instability and double natural disasters of the monsoon flood and Hurricane Sidr which dampened overall business. Overall, the market closed the second quarter of 2008 with 50,102 total units shipments. IDC forecasts the full year PC shipment in 2008 will be higher than last year, despite concerns about a market slowdown in 4Q08 as the country enters into the Election period.

Commercial PC accounted for 67% of the total market in the first half of the year. Growth in the commercial segment was driven by major banking deals from January to June, although the bigger contributors were mainly Small-Medium Businesses and SOHO. "The fragile economic stability in Bangladesh continues to limit the growth of the commercial PC market, however, the market still managed to grow during the last two quarters with minimal disruptions," said Handoko Andi, Market Analyst for Personal Systems Research at IDC. "While the market is poised to take off, the monsoon season in 3Q and government elections in December may pose challenges that could restrict its growth."

As a result of the country's Election project, the Commercial Notebook segment performed extremely well in the first quarter of 2008, a feat which could not be matched in the second quarter as no other projects came close to the massive number of PC units purchased. Moreover, in the form-factor segment, the recent and current inflation in Bangladesh finally put an end to the previously unstoppable market of Consumer Notebook. Overall, 2Q08 Notebook market slowed down by 35% sequentially, despite an impressive growth of 45% compared to the same period last year. Inflation, however, has led to a stronger growth of the Desktop market as end-users purchase has shifted to the more traditional and cheaper PC instead.

"In 2Q08, almost all Desktop PC sold in Bangladesh are priced below US$1,000, while 76% of Notebook PC sold were between US$500 to US$1,500. During a weak economic situation, end users will tend to buy cheaper alternative or delay their PC purchase altogether," said Andi.

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Contact

For more information, contact:

Belinda Yap
Senior Executive, Events and Marketing Services
Tel: +603-2169-7521
Fax: +603-2163-5098
Email:byap@idc.com

Handoko Andi
Market Analyst
Tel: +62-812-819-8930
Email:ahandoko@idc.com