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Thailand: Computer market flat on weak sales
The Thai computer market continues to be subdued this year, with a possible contraction of 0-3% in terms of unit sales as the sluggish economy takes a toll on the segment, say industry analysts.
Meanwhile, computers next year will be made smarter, faster and segmented with longer battery life, thanks to advanced technologies including 5G, artificial intelligence (AI) and cloud services.
Takon Niyomthai, consumer head of Lenovo Thailand, a local operating unit of the world’s largest PC maker, said the computer market fell 7-8% in the third quarter because of lacklustre consumer sentiment and high household debt.
“The overall industry this year could see flat growth down to a contraction of 5% from 1.3 million units in 2018,” said Mr Takon.
In 2019, gaming computers made up 30-40% of the total market, while thin and light notebooks accounted for the rest.
In 2020, computer technology will thrive using 5G, AI, sensors, longer battery life from 10-14 hours and more powerful processors, he said.
Computer segmentation can be expected, including premium thin and light laptops weighing less than 700 grammes, cloud-based gaming notebooks and foldable display devices.
Some new computers will be equipped with a sensor for eye detection, making a cursor move in line with eye movement.
“Devices will be smarter and personalised with more micro-segments expected to serve different customer needs,” said Mr Takon.
“New technologies could help boost user demand for computers and hopefully we will see single-digit growth in the market in 2020.”
Nitipat Praweenwongwuthi, marketing director of Acer Computer, said the economic slowdown has taken a toll on the market, particularly in the second half of this year.
Flat growth or a contraction of less than 5% can be expected in terms of units, he said, but in terms of value, single-digit growth could happen because of the sales of gaming computers, which have higher prices.
Mr Nitipat said Acer sees the emergence of a new sub-segment involving computers for digital content creators and animation producers who require faster graphic performance.
To cater to their needs, Acer has introduced a new brand called CenceptD, designed for digital content creators in particular, he said. There will be another sub-segment of gaming computers.
Creators need high graphic performance, while gamers need powerful processor performance, said Mr Nitipat.
He believes the local computer market has passed its nadir in the last five years.
“No further contraction is expected, though flat growth could still happen,” said Mr Nitipat.
Although the economic situation may worsen next year, new technologies could still help boost computer spending, and flat growth can still be expected, he said.
Computer users need more service warranties from vendors, possibly 2-3 years, as after-sales service has become one of three key elements for users’ purchasing decisions, said Mr Nitipat.
Computer vendors are expected to slash prices sharply this quarter after 30% surplus computer inventory was recorded in the previous quarter, as opposed to 5-10% on average, said Pornchai Jantarasupasang, director of ARIP Plc, the organiser of Commart Work 2019, a computer fair running at Bitec until Dec 22.
The event is expected to generate 3 billion baht in sales, he said.
Source: https://www.bangkokpost.com/business/1819999/computer-market-flat-on-weak-sales