People’s Daily reports:

Sales of personal computers (PC) in China grew steadily in 2007, driven by a price war, said a report released in Beijing on Tuesday.

Last year, 27.94 million desktop PCs, laptops and servers were sold nationwide, up 19.5 percent over the previous year, said China Center for Information Industry Development (CCID) Consulting, a market research company under the Ministry of Information Industry.

Owing to price cuts, sales value, which stood at 147.2 billion yuan (about 20.59 billion U.S. dollars), rose by 12.8 percent.

The article doesn’t provide trend data for total unit sales or total volume of sales. Nor does it give any insights into profit margins. Nevertheless, 19.5% growth is nothing to sneeze at.

Some major brands sold for 4,000 yuan per unit and the average price for laptops fell from 8,000 yuan to 7,000 yuan in 2007, he said.

In 2007, sales volume of laptops jumped 49.5 percent year on year to 6.3 million units, while sales value grew by 33 percent year on year to 50billion yuan, according to the company.

…According to CCID Consulting, the market’s sales value will reach 170.4 billion yuan in 2008 and 263.87 billion yuan in 2012.

With the US economy slowing considerably (and possibly in recession), the fast-growing China computer market will be targeted by computer vendors eager to offset lagging sales elsewhere. Lenovo and Founder have expanded their laptop production dramatically for 2008, hoping to build market share.

Expect more computers in the market and lower prices for 2008.

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