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Lenovo claims China's PC industry meets bottleneck |
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Written by Administrator
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Thursday, 13 July 2006 |
BEIJING, July 13 (InfoChina) – Profit from making PCs should get thinner as China’s PC industry is undergoing a bottleneck featuring malignant competition and price wars.
Lenovo (China) Group president Chen Shaopeng says the country’s PC industry is in a mire of producing PCs with similar functions, competing merely on prices.
Chen says the price wars will hamper the industry development in the long run, but the company’s major rival Dell still plans to drag the prices further down.
Lenovo (PNK: LNVGY.PK) takes approximately 40% of the Chinese PC market. But its dominance is threatened by Dell and other manufacturers as Shenzhou, whose trump card is lower prices.
At present, the average price of desktop PCs has fallen below 3,000 yuan, while that of laptops has dropped to about 6,000 yuan.
It is learned that a PC priced at 4,000 yuan can only yield a profit of 100-200 yuan. Above prices indicate that PC makers are competing at the cost of losing money.
Certain market watchers read Chen’s remarks as a signal that Lenovo may quit the malignant competition and push China's PC industry onto a road of sustainable development. |
China Stock News