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Lenovo Still Leads AS China’s PC Market Shrinks By 1% in First Quarter

According to canalys, shipments of PCs (desktops, notebooks, and workstations) in China fell by 1% to 11.75 million units in Q1 of last year. Shipments of desktop computers, including workstations, were also down 11% year over year to 3.9 million units. While shipments of notebooks, which include mobile workstations, continue to expand at a healthy rate of 6% per year to 7.7 million units.

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With 4.29 million machines sold for the time and a 37 percent market share, Lenovo was the market leader at first. While Dell was the second-largest market with 1.39 million units and 12% of the market, HP was the third-largest market with 0.97 million units and 8% of the market.

As a result, Asus, with 0.83 million, and Huawei, with 0.71 million, round out the top five. Desktop sales plummeted by 11 percent to 3.9 million units per year, while laptops were the only product category to expand by 7.7 million units and gain a market share of 6%.

In Q1 2022, the Chinese tablet market fell for the fourth time in a row, with shipments falling by 13% to 4.7 million devices due to supply concerns and reduced demand from individuals and enterprises.

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People’s Republic of China (Mainland) PC (Desktop, Notebook & Workstation) Shipment & Growth, Canalys PC Market Pulse: 1st quarter 2022

vendor Q1 2022 Shipments (thousands) Q1 2022 Market Share Q1 2021 Shipments (thousands) Q1 2021 Market Share annual increase
Lenovo 4,289 37% 4,276 36% 0%
Ditch 1,389 12% 1,295 1 1% 7%
Himachal Pradesh 975 8% 1,132 10% -14%
Asus 833 7% 624 5% 34%
Huawei 710 6% 428 4% 66%
Other 3,462 30% 3,996 34% -13%
Total 11,657 100% 11,750 100% -1%

NOTE: Percentages may not be up to 100% due to rounding off figures.

SOURCE: Canalys PC Analysis (Sell-in Shipment), May 2022.

Despite the fact that the first quarter of 2022 was still rather healthy, China’s PC industry is facing significant hurdles on both the supply and demand sides as a result of COVID-19 lockdowns. “Supply shortages of key components, such as driver ICs, have moved further into Q1, while production and logistics have worsened significantly due to lockdowns in the key cities of Shanghai and Kunshan,” says Canalys Analyst Emma Xu.

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Meanwhile, limits on business and consumer activities, along with a deteriorating economy, pose a danger to domestic PC demand. Weaker consumer spending and restrained commercial demand, particularly from small and medium-sized businesses, will pose a challenge to PC suppliers in China for the remainder of the year.

As the government’s budget tightens this year, the procurement section of the government is also expected to decline. However, education is likely to remain a bright spot, as aims such as reducing socioeconomic disparities and improving vocational education programs may be poised to encourage investment that will benefit the technology sector.

Finally, the competitive situation for Chinese PC wholesalers is expected to shift even more in favor of domestic companies. The administration is redoubling its efforts to address security concerns about the use of foreign-developed hardware and software. As fundamental members of China’s ‘Xinchuang’ industry, which focuses on strengthening domestic IT innovation, wholesalers such as Huawei and Tongfang are expected to see unprecedented potential.

This information was first published on nyscinfo.comDMCA PROTECTED.

Source: Nyscinfo

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