Free from import taxes and helped by the government, local PC vendors in China are thriving at the expense of multinational giants like Hewlett-Packard (HP), according to new IDC research.
In a first-of-its-kind survey of the 50 top PC distributors in China, IDC Asia/Pacific found local PC vendors, such as Legend Group, are meeting the needs of distributors by supplying low-end PCs at the right prices.
"Legend is doing very well; their sales are skyrocketing," said IDC analyst Lisa Cosmas. She added that Legend currently leads HP and Compaq for unit shipments to Chinese markets.
That doesn't bode well for international vendors, many of whom are looking to China for continued growth, particularly as the economic crisis continues to rock the rest of Asia, IDC said in the report.
"For PC vendors, the next three quarters are crucial and will define who owns the PC distribution channel in China in the near term," said Karim Davezac, director of IDC's China group, in the report.
IDC's study examined distributor satisfaction in 25 categories including vendor pricing, sales and marketing support, technical support, and product distribution.
HP outperformed competitors in terms of "overall distributor satisfaction," while Legend came out on top for its "effective product distribution" -- meaning the company is supplying the right types of computers at the right price, Cosmas said.
IDC reports can also be ordered at www.idcresearch.com.