BEIJING, August 21, 2012 – According to the International Data Corporation (IDC) China Monthly PC Tracker, the sluggish China PC market showed signs of recovery in July when the year-over-year growth rate was slightly better than in June and the sequential (month-over-month) growth rate improved for the second consecutive month.

Source: IDC China Monthly PC Tracker (July 2012, preliminary data)

Source: IDC China Monthly PC Tracker (July 2012, preliminary data)

Note: The month-on-month growth rate for April 2012 is based on the comparison of data in March and April 2012.

Kitty Fok, vice president of IDC Asia/Pacific and general manager of IDC China, noted that, "IDC previously predicted slowing growth through the first half of 2012 with a worst-case scenario affecting market growth into the third quarter. However, based on the data at hand, we can now see that this round of cyclic change bottomed out in May 2012. With the launch of new products and the expected purchasing spree among students going back to school in August and September, and channel inventory gradually returning to normal in this period, IDC believes that the market will turn more positive in the third quarter. From a competitive perspective, Lenovo will remain the market leader in the third quarter after securing a 35.2% share of China PC market in Q2 2012. ASUS and Dell also posted excellent results in the second quarter. It is obvious that competition will continue to intensify in the third quarter."

According to Fiona Wu, research manager, IDC China Personal IT Systems Research, the following hotspots will drive the recovery of the overall personal IT market in the second half of this year:

1. New products: As consumers increasingly pay attention to operating systems (OS), the launch of products such as Windows 8 is not only about product upgrade and replacement, but also will stimulate more demands for new products as it has done in the mobile phone market. Products such as the IdeaPad Yoga have commanded expectations from consumers on the Internet, as vendors start to position for the launch of Windows 8 in China.

2. Ultrabook market on a rise: Based on what IDC monitored in June and July, the ultrabook market starts to grow. With easing of ultrabook prices in the second half, more and more customers will expect products of this kind.

3. Promising commercial market: The commercial market may remain soft in Q3, but IDC expects this market will rise in Q4, driven by relevant policies due later this year. Healthcare and manufacturing, among others, are expected to emerge as new forces to drive this market.

"The rebound of the PC market will influence the recovery of the overall personal IT market. It is predicted that display and printer, among other markets, will grow in the second half of this year or at the beginning of next year,” added Antonio Wang, senior research manager, IDC China Personal IT Systems Research.

For more information about IDC China, please visit www.idc.com.cn. To purchase this report, please contact IDC China Sales Department at +86-10-58891666 or send email to fwang@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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