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Malaysian SMBs will drive moderate growth in local PC market

AvantiKumar | March 27, 2012
Despite uncertainties in local PC market, SMBs will help to stabilise and grow market: Lenovo Malaysia

Khoo Hung Chuan - Lenovo Malaysia

PHOTO - Khoo Hung Chuan - Lenovo Malaysia country general manager.

Malaysian small and medium businesses will help to drive moderate growth in the local PC market, according to computer manufacturer Lenovo Malaysia's value added resellers.

Speaking on 12 March 2012, Lenovo Malaysia country general manager Khoo Hung Chian said that though 2012 will be a year of uncertainties, the company's value added resellers (VARs), during a training seminar, believed that the local PC market would remain stable and continue to grow even though businesses would be cautious about their purchasing decisions.

Khoo said that the sentiments expressed by the VARs echoed the general views of industry observers. "Research firm Gartner reported that the latest worldwide PC shipments totalled 92.2 million units in the fourth quarter of 2011, a 1.4 percent decline from the fourth quarter of 2010. For the year of 2011, worldwide PC shipments totalled 352.8 million units in 2011, a 0.5 percent increase from 2010. The results affirm that while demand for PCs will remain constant, growth will be minimal."

"Lenovo continues to outperform the PC industry and our competitors for the past 11 quarters, and we are optimistic about maintaining the momentum in 2012," he said. "SMBs will be a key growth area for Lenovo in Malaysia, on top of our healthy consumer and enterprise business. We expect to see demand for PCs to remain healthy, especially when more local SMBs embrace technology for the first time."

About 80 VARs of all sizes attended Lenovo's 'Meeting of the Minds' seminar, which was held to help  Lenovo VARs cope with the business challenges ahead, and address the needs of customers from all sectors.

Most of the seminar attendees said that PC purchases would continue to hold steady - but it would not be business as usual. Khoo said that aside from the global uncertainty that was curtailing IT spending, VARs were also aware of other factors, such as the need to stay cost competitive, the emergence of alternative computing devices such as tablets and smartphones penetrating the business, and the introduction of new technologies such as Intel's Ultrabook platform and the upcoming Windows 8 operating system.

Jamie Soh, owner of a local medium-sized VAR and PC rental company, shared at the seminar that her customer base of mostly SMBs has been tightening their wallets in the event of the global economy heading south. She said that for the past six months, there were considerably fewer new SMBs purchasing PCs, and an increasing amount of SMBs are considering leasing or renting PCs to reduce their IT expenditure.


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