Intel sees India, China PC sales soaring

Intel expects demand for PCs in India and China to continue to soar despite a possible slowdown in Asian economic growth in 2005.

Intel Corp, the world's largest microchip maker, said on Tuesday it expected demand for computers in India and China to continue to soar despite a possible slowdown in Asian economic growth this year.

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"The growth prospects in India and China remain very strong," Intel's Asia Pacific general manager John Antone told Reuters in an interview.

"We've seen 30 to 35 per cent year-on-year unit shipment growth in India over the last few years and we expect the very high rates to continue."

China, the world's second-largest PC market, would continue to enjoy 15-20 per cent annual growth in PC unit shipments, he added.

"We expect in another five years, China could become the world's largest consumer of PCs."

Chinese PC sales rose 19 per cent to 16 million units last year, according to preliminary International Data Corp (IDC) figures, while US demand grew 11 per cent to 58 million. Indian growth last year was 31 per cent.

Though regional economic engines may cool down in 2005 as the US economy slows, Asian PC demand was likely to stay resilient.

"In China and India, there are three billion people, of which 80 to 90 per cent do not own or have access to computing, and while not completely isolated from worldwide economic growth, it appears that demand for PCs is going to remain strong," he added.

Asia Pacific ex-Japan contributed about 46 per cent of Intel's total revenue in the fourth quarter, with Japan accounting for about nine per cent.

Intel's microprocessors, the "brains" of a personal computer, are used in 80 per cent of the world's PCs.

The Asia Pacific ex-Japan saw total PC shipments of 34 million units last year, 16 per cent higher than in 2003. Growth is expected to ease to 11 per cent this year, IDC said.