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China Information Technology Report Q3 2015

105 Pages BMI Research June 24, 2015 SKU: BMI5600216

China Information Technology Report Q3 2015

BMI View: China continues to outperform in terms of IT spending growth and IT sector development due toa mix of economic strength and a forward-looking policy environment. Even after rapid growth in the pastdecade, the market remains attractive with strong growth prospects resulting from (inter alia) the size ofpopulation, rising incomes, relatively low penetration of devices and solutions and a supportive policyenvironment. IT spending growth in China is expected to outperform on a regional and global basis, with aCAGR of 8.8% forecast 2015-2019 as IT spending increases as a share of GDP. However, China's ITmarket is not without its challenges as the pool of first-time buyers diminishes and vendors continue tostruggle in the face of ongoing high levels of piracy, cyber security issues, intense competition for pricesensitiveconsumers and uncertainty generated by regulatory decisions, particularly in the rapidlydeveloping cloud computing market. We believe the outlook is positive overall, with the caveats mentionedabove.

Headline Expenditure Projections

Computer Hardware Sales: CNY561.7bn in 2014 to CNY593.4bn in 2015, +5.7% in local currencyterms. A stabilisation of the tablet market after declining volumes in 2014 will see growth accelerateslightly in 2015, but remain below the rate to 2013 when tablet sales boomed.

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China Information Technology Report Q3 2015

BMI Research
June 24, 2015

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