Matsushita to tap local PC market

  First post by: www.itsbattery.com

Japan's Matsushita Electric, one of the world's top Toshiba Laptop Battery home appliance makers, plans to sell notebook computers in China, making its first foray into the galloping, but cut-throat, local PC market.


"China's PC market has been expanding despite a worldwide slump, which has prompted us to tap into the local PC market," said Ryoji Uchida, a manager in charge of Matsushita's PC sales in China.

A factory based in Xiamen, a coastal city in East China's Fujian Province, will produce notebook computers for Matsushita, Uchida told Business Weekly.

Matsushita is the sole investor in the factory.

Matsushita Electric (China) will be responsible for sales of its notebook computers in China.

The company, best known for its National and Panasonic brands, will sell two laptop models in China.


"We are hoping Matsushita can build up a well-known Toshiba PA3191U-1BRS Battery brand in China's PC sector, following its great success in China's home appliance market," Uchida said.


He acknowledged it will not be easy for Matsushita to take market share from already well-established players.

"We are in an unfavourable position compared with top players such as Dell and Toshiba, which have large production volumes and have controlled their costs very well," he said.

"Thus, as part of our initial PC strategy in China, we will try to tap into niche markets by developing and producing what our rivals do not have."

The first two models introduced by Matsushita to the Chinese market will be the "Toughbook" series. The computers will weigh 990 grams and 1.09 kilograms.

Both will be ultra-thin, with batteries that last about five hours.

"These two models will be aimed at young Chinese business people who have high demands for mobile offices, especially Chinese women," Uchida said.

Booming, but tough market in China

Matsushita's initiative reveals how massive, and booming Laptop BatteryChina's notebook computer market is, suggest industry observers.


PC shipments last year to China reached 9.29 million units, representing an 8.7-per-cent growth year-on-year, and accounting for about 43 per cent of total shipments in Asia-Pacific, indicates data tracking company Gartner.

A slew of aggressive price cuts by manufacturers in recent years have enhanced the popularity of notebook computers in China,

Sales of notebooks in China grew nearly 40 per cent last year, Gartner said.

Beijing-based local market researcher CCW Research put the figure even higher, at 48.8 per cent.

Some 887,000 units of notebook PCs were sold in China last year, it said.

Analysts predict that growth will be maintained or increased as prices of laptops continue declining.

Notebook PCs promise much higher profit margins than desktop PCs.


Matsushita aims to sell thousands of laptops in China this year, said Hirotaka Sugizaki, supervisor of Matsushita's information Toshiba PA3166U-1BRS Battery and communication equipment sales team for China and Northeast Asia.


Next year's sales will depend on market conditions, he added.

Analysts suggest the target is a bit conservative, given the market is expanding and Matsushita's sprawling sales channels for home appliances and digital products will help it compete and stake out a larger share of the laptop market.


"The potential of China's notebook PC market is far from fully Toshiba PA3331U-1BRS Battery tapped, as laptops are becoming affordable for more Chinese consumers," a Beijing-based analyst said.


Yet, Matsushita has a tough future in the market, which is undergoing a restructuring, the analyst noted.

Although top players such as Dell, IBM, Toshiba, Sony and China's Legend maintained or gained their shares of the market last year, some minor players have been washed out of the laptop market.

Local vendors such as Great Wall, Langchao and Hisense have pulled out of the notebook business due to difficulties in gaining market share.


"It would be better for Matsushita to seek partnerships with local players, as their expertise in the PC market, combined with Matsushita's clout in the home appliance sector, would help Matsushita cement its footing in the notebook business," Toshiba PA3098U-1BRS Battery the analyst said.