PC Price War

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PC encounters development bottleneck and falls into homogeneity and price war

2006-7-13

Recently, at the launch ceremony of Lenovo's new commercial computers, Lenovo China President Chen Shaopeng publicly admitted for the first time: "The domestic PC industry has entered a bottleneck period of development." As the largest Chinese PC market with a market share of nearly 40%, and the third largest in the global PC market, Lenovo's senior management's statement is intriguing.

Chen Shaopeng believes that the PC industry chain has now completely fallen into a vicious competition of homogeneity and price wars. Price competition and configuration competition have already curbed the development of the PC industry, because the ever-lowering prices and dazzling configurations of computers have made consumers numb. However, Lenovo's main competitor in the commercial market, Dell, may not think so. The latest news shows that Dell plans to significantly reduce the prices of its commercial computers starting from Thursday this week, with the aim of "regaining growth vitality and regaining the market share lost from last year to the beginning of this year." In addition, domestic second-tier computer manufacturers such as Shenzhou also use price wars as a magic weapon to gain market share.

Price reduction has always been one of the biggest driving forces for the development of the domestic PC industry. However, the reporter saw yesterday at the Gome Electrical Appliances store that the price of desktop PCs has dropped to below 3,000 yuan, and laptops have also dropped to around 6,000 yuan. Not long ago, domestic companies even launched some laptops priced around 3,000 yuan. The profit of a 4,000 yuan computer is only 100 or 200 yuan. The price of computers has reached a stage where it can no longer be reduced.

On the other hand, the main purpose of many users buying PCs is to surf the Internet, including many business customers who complete their business on the Internet. However, with the deepening of industrial integration, mobile phones and TVs may become terminals for users to surf the Internet. The role of computers as Internet terminals will inevitably weaken, which is also one of the difficulties currently faced by the computer industry.

A senior industry analyst believes that in the face of the bottleneck of industrial development, the so-called "new value movement" initiated by Lenovo can be understood as a breakthrough. It is a signal to the entire domestic PC industry, indicating that the domestic PC industry has entered an era dominated by "user value and user experience" from an era dominated by price and configuration. Even the appearance design will influence the user's purchasing intention. (