The Indonesian Client PC Market Hit A Record High Exceeding 1.8 Million Unit Shipments In The First Three Quarters of 2008, Says IDC

Jakarta, 07 January, 2009 – Based on IDC’s Asia/Pacific Quarterly PC Tracker, 3Q 2008, the Indonesian client PC market recorded tremendous growth of more than 50% year-on-year in 3Q08, closing in on the 700,000 unit shipments per quarter mark for the first time. This brings the total unit shipment for the first three months of 2008 to 1.8 million. The Indonesian client PC market surpassed the previous year's performance, ending in September before the global recession wave hit, which led to potential buyers putting a halt on PC spending in October. The commercial segment still dominated Indonesia's overall client PC market by taking 52.2% of the total market in 3Q08, assisted by healthy buying from the corporate and government sectors. In addition, the consumer segment displayed a 108.8% year-on-year growth in 3Q08, driven mostly by the larger sales of notebooks.

The desktop market increased by 17.8% year on -year and took 52.7% of total market share against the notebooks. Despite the strong demand in the commercial market, desktop continued to lose its popularity within the consumer market as mobile PCs gradually replace desktop buying. Until Q308, notebooks dominated the consumer market and outnumbered desktop shipments, with a total of 75.7% market share. The Notebook market share is driven by the high demand for low-priced notebooks which started in 2006 and the increasing popularity of notebooks with updated features.

"Notebooks that are priced below USD1,000 dominated the market with 65.8% share from July to September. The overall notebook market increased by 23.2% sequentially," according to Handoko Andi, Market Analyst for Personal Systems Research at IDC Indonesia. "One of the crucial growth factors in the notebook market came on the back of mini-notebook series’ flooding the market, launched by many vendors in response to the ongoing high demand for mini-notebooks," he added.

Despite the shrinking market share, desktop continued to grow in Q308 and increased 8.7% sequentially. Most commercial users in Indonesia still chose desktops over notebooks as reflected by its immense 78.7% total commercial market share. Small and medium businesses took the biggest share of desktop PC buying within the commercial segment, as it accounted for 70.0% of the total commercial desktop market. Small and medium enterprises have the most stable client PC spending rate in any given quarter in Indonesia, which provides vendors with a significant potential market for both desktops and notebooks.

The market outside Jakarta also helped to strengthen Indonesia's client PC market for the quarter. Although most distribution starts from Jakarta as the central gateway of the country, the markets outside the city have dwarfed Jakarta in its total market share, driving PC vendors to adapt to the widening competitive field. Handoko adds, "IDC recognized huge potential markets in Surabaya, Semarang, Yogyakarta, Bandung, Medan, Pekanbaru, Palembang, Makassar, and Balikpapan. With markets widely spread in four heavily populated islands, Indonesia has the potential to become the largest PC market in South East Asia as consumer demand for client PCs is far from slowing down".

For more information about purchasing the research, please contact Andreas Widjajanta at +62-813-1490-0639 or awidjajanta@idc.com. For press enquiries, please contact Belinda Yap at +603-2169-7951 or byap@idc.com

ENDS

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Belinda Yap
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Andi Handoko
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