IT Hardware Channels continue to have a robust market growth, says IDC

July 11, 2005

Manila, July 11, 2005 – As the Philippine market is still in the primary stages of IT adoption, hardware channel partners will continue to experience substantial growth. This is due to the fact that unlike in most developed countries, where spending in services takes the largest portion of the total budget because most of the physical infrastructure is already in place, the Philippines is still on the edge of completing and improving infrastructure for IT adoption.

Meanwhile, the market has recently shifted its attention to SMEs and consumer spaces which makes up the 99% of the Philippine market. This change can be attributed to SMEs to early stages of IT adoption, wherein procurement of IT equipment is becoming increasingly necessary. Moreover, because channel partners are better able to establish their own particular niches, the availability of space and opportunity in the SME sector is significantly higher than in the large business sector.

"In the Philippine market ecosystem, vendors and channels alike need to explore and provide customers with additional service offerings that will add value to IT hardware purchases. IDC believes that the IT market, especially the SME and consumer sectors, will increasingly demand such value-added services (VAS). Thus, it is important for vendors to maintain a channel structure that is both respective and responsive to additional client needs," says Catherine Foronda, associate analyst, IDC Philippines.

Looking forward, the consumer and SME spaces will provide considerable opportunity for both vendors and channels. As such, vendors will need to ensure that channel partners are given the appropriate lines, which are in-tune with their particular target's needs and should focus on developing efficient and functioning relationships with their channel partners, as this relationship is the link that bridges the customers to the vendors.

IDC's latest research, Philippines IT Hardware Market: The Dynamics of the Channel Network Landscape explores various key challenges and issues faced by channels carrying IT hardware products and help vendors better understand the overall market opportunity and channel dynamics, with an emphasis on the channel issues and factors that are considered in partnering with vendors.

For more information about purchasing the research, please contact Hazmi at +603-2169-7526 or hyusof@idc.com. For press enquiries, please contact Stephen Chong at +603-2169-7521 or ckchong@idc.com.

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Chong Chee Kian
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