IT markets encouraged despite low GDP growth

       Although Thailand's slumping economy means it is currently experiencing the lowest GDP growth in the Asean region, its purchasing power remains strong, with the kingdom ranking second behind only Malaysia, according toGFK Retail and Technology (Thailand) Country Manager Chaiyarit Piyabootr.
       Chaiyarit said Thai consumer spending on IT remains strong because of the market size and quick adoption of new technology.
       However consumers remain cautious about spending while they wait to see if the economy will improve.This is expected to begin in this year's fourth quarter and the government's stimulus package should boost consumer spending confidence.
       In the first seven months of this year, compared with 2009, sales of IT products in the retail channel declined 13 percent, while prices have increased 9.5 percent. The price rises have failed to offset the dip in sales, leading to a sales value decrease of 4.7 percent.
       But in the same time frame, the notebook in retail market did enjoy growth - the only IT product to do so.Sales increased 14.9 percent in January to July of this year, compared to the same period in 2008, although the sales value growth was just 3.2 percent, due to a 10.1 percent price drop as a result of fierce competition.
       Veerasak Chaiyaroj, Division Manager, IT Division at GFK, added that this year, for the overall Mobile PC market (Retail + B to B+ Event sale) is about 800,000 units. This is a growth of 7 percent in unit terms and 5percent in value terms, with the best-selling low-end models retailing for 20,000-22,000 baht.
       Last year, the mobile computer market grew 20 percent, which shows the extent of the economic decline.
       The situation, while unpredictable,is expected to see a modest improvement next year, with a projected 10 percent growth in unit sales.
       Veerasak continued that in the first six months of 2010, netbooks should make up 20 percent of the overall mobile computer market.
       However unit prices for netbooks are now overlapping with budget notebook models, at around 13,000 to 14,000 baht, which is expected to reduce the overall market share of mobile computers to 15 percent.
       The desktop market, meanwhile, remains stable.
       Unit sales are expected to grow 1 percent next year, with a negative sales value growth of 2 to 3 percent.
       In January-July in retail outlets, compared with the same period in 2008,desktop sales value declined 5.9 percent, while units sales dropped 5.3 percent and prices reduced 0.5 percent.
       The price plunge was due to fierce competition, with some models available for as little as 5,900 to 6,900 baht without monitors. However the average selling price was 15,000 baht.
       For the total Desktop PC market demand 2009(Retail + B to B + Event sale) is about 1,010,000 units. Growth 1 percent in unit terms and -2 percent in value terms.
       Veerasak said:"We believe there is still a demand for desktops from upcountry users and in schools.
       "Furthermore, new technology and developments such as Windows 7 will help create momentum, leading to market growth in the first quarter of 2010."