PC sales to take off in China?

China's small businesses are expected to purchase about five million units of personal computers over the next 12 months, a move that spells a vast potential for PC vendors, says AMI-Partners.

There are 8.34 million small and medium-sized businesses (SMEs) in China, 99 per cent of which are small with between one and 99 employees, according to AMI-Partners. The research firm added that the remaining one per cent of the Chinese SME market are medium businesses with 100 to 999 employees.

AMI estimates that 60 per cent of China's small businesses still do not use PCs in their daily operations. However, 72 per cent of these companies will be looking to purchase an average of 1.3 units of PCs over the next 12 months, raking up orders totalling almost five million units, according to AMI.

But PC makers need to understand that this particular group of users tend to be price-sensitive, said Diana Ng, research analyst from AMI-Partners' Singapore office, in a media statement.

She explained: "Before PC vendors can smile their way to the banks, they need to know that this target group are careful with IT spending. These SM[E]s tend to shop around for the most competitive price before making any IT purchase decisions."

According to AMI, small businesses that still do not have PCs often prefer home-grown brands such as Lenovo, over other foreign brands. The research firm noted that these brands are preferred over others because they are perceived to be "products with world-class technology at competitive price-points".

One in 10 SMEs which the research firm surveyed planned to buy a notebook computer in the next 12 months, with the majority indicating interest in purchasing a Lenovo machine.

Long Li Yann writes for ZDNet Asia