Fast-growing China market to surpass the United States as the largest consumer of PCs by 2010, its Asia-Pacific chief says.
China became Intel's second-biggest market last year, trailing only the United States in terms of sales.
"For PCs, China is now easily No. 2,'' John Antone, general manager for Intel's Asia-Pacific region, said Wednesday. "We expect China to continue to grow to the point where it's equal or larger than the U.S. as a consumption market by 2010.''
The Chinese PC market is expected to reach 13 million PCs units this year, eclipsing Japan's 12.7 million units to rank as the world's No. 2 PC market, according to market researcher IDC. The U.S. market is expected to come in at nearly 51 million units, IDC said.
Last year, the figures were 47 million for the United States, 12.5 million for Japan and 11.3 million for China, according to IDC.
Antone made his remarks as Intel posted better-than-expected results for the third quarter, including a near 150 percent jump in profit from a year earlier and 20 percent growth in revenue.
The Asia-Pacific region, excluding Japan, was a major growth driver, with regional sales accounting for 42 percent of Intel's total, compared with 41 percent in the previous quarter and 38 percent a year earlier.
Including Japan, Asia accounts for 51 percent of Intel's sales. Antone said he expects that share to continue to grow, driven primarily by markets outside Japan.
"It's now a little bit above the midpoint and will probably continue to grow,'' he said of Asia's share of sales. "As that percentage goes up, sequential increases will likely slow down because it's gotten to be such a big part of our revenue. Emerging-market growth--the biggest of which is China--relative to mature markets is going to continue to be faster.''
In a nod to China's growing importance to the company, Intel said in August it will build a $375 million plant for chip testing and assembly in the interior Chinese city of Chengdu.
Antone said construction of the first $200 million phase of the Chengdu plant will begin early next year. The plant is set to open in late 2005.
Related Links:
> Intel's quarter tops expectations
> Intel plans chip packaging center in China
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