“Hewlett-Packard Co expects to become the second or third largest player in China’s booming personal computer and laptop markets by 2008, a senior company executive said yesterday,” Bloomberg reports.
“Hewlett-Packard Co, the world’s second-biggest personal computer maker, will increase investment in China and start selling digital cameras and home entertainment systems in the country, said chief executive Carly Fiorina. ‘Hewlett-Packard’s promise to invest in China has remained a priority and our level of investment is on the rise,’ Fiorina said at a presentation in Shanghai,” Bloomberg reports. “Fiorina is focusing Hewlett-Packard on digital cameras, photo printers and entertainment systems as consumer electronics demand growth outstrips that for computers. Last year consumer market sales made up a “huge part” of the company’s business, accounting for US$18 billion of the Palo Alto, California-based company’s US$75 billion total revenue, Fiorina said.”
Bloomberg reports., “‘China is the largest and fastest growing consumer market in the world today with more than 1.3 billion consumers,’ said Fiorina. ‘The use of computers is spreading more rapidly here than any other nation.’ Hewlett-Packard returned to China eight months ago after withdrawing in 2001. The company plans to introduce its full range of consumer products, Fiorina said. This includes the HP-branded iPod music player based on Apple’s best selling music player, as well as projectors, entertainment hubs and displays.”
Full article here.
1.3 billion people do not make 1.3 billion consumers. The majority of the Chinese still have a subsidence lifestyle, and don’t have time nor money to think about HP computers and iPods.
Dave H, my thoughts exactly. There’s a huge rural population that can’t even imagine that these things exist.
…not all people in china live in mudshacks and grow rice for a living.
The metropolitan areas are exploding because people are leaving the country side to avoid starvation and fading agricultural opportunities.
The Chinese will buy it, copy it, sell it inland and import the rest to the US for half the price…and the US trade imbalance will grow larger…
Apple Board member Al Gore will then be dispatched to settle the problem with the Chinese.
They will copy Al Gore, build robots like him and flood the US with RoboAls.
All the RoboAls will run for President in 2008 and with Hillary as VP will win the White House.
The Chinese will then control the RoboAls with their CHIpods
and take over the world.
Do we really want Apple and HP to sell the ipOd technology to the Chinese?
CHiPods? Now THAT is funny!
…And I bet HP won’t have the same pricing policy in china as in the usa. They are not obliged to sell them at US$250.00 each to the chinese. Since these are HP model, HP can sell them a cheaper unit with cheaper parts at a lower cost just to corner the market. Same thing happens with vcr, dvd player, tv or other consumers electronics.
subsistence
when can we expect to see Chinese music available on iTMS?
“…Do we really want Apple and HP to sell the ipOd technology to the Chinese?…”
Do you really think they don’t already have them?
Don’t kid yourselves Let me tell you a fact. Broadband in China is nearly $20 a month (and it’s faster than ours.) The airport had several Laptops (bolted down) on hi-speed connections for anyone to use to check email and whatever else. Broadband is everywhere in China. A friend tells me they are much more advanced in the tech sector than most people think.
Darn US Cable companies! They need to reduce those prices. I’d say we bring in a Chinese owned Cable company.
LOL I loved Trading Jim’s scenario.
my point was that not everyone in on the tech edge, especially in China (and India for that matter). In many countries the gap between the rich and poor is so huge that we can’t comprehend it. Yes, people are flooding to the cities and there is a huge amount of wealth growing in China, but there aren’t 1.3 billion well-off people in China (or India, or the US, or the UK, or…)
Maybe not 1.3 billion…but considering just the
“middle” and “upper” classes, you’ve got a market of around 800 million.
mac 84, thanks for the correction. My post above is really funny when you read it like that.
Not only do they have to grow food to survive, but they are all sliding down the hill.
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This is my first post ever. Don’t know why I thought I had to say that but…
Anyway, there has been talk on these boards of porting OSX to x86 before and I understand the points of view on both sides, but what if… What if Apple only licencsed it out to one vendor? In this case HP. Wouldn’t that be a way into the fray? Without compromising their whole business, which the way things are now like it or not is a niche market, Apple could…
I’ll leave it for you to finish the sentence. I’m just throwing it out there for all voices.
Peace is every step.
Walk the walk.
“…Do we really want Apple and HP to sell the ipOd technology to the Chinese?…”
That’s a loon. Check out this company’s mp3 line-up; http://www.godot.com.tw/product.htm they have done the best job in my opinion and know one has seen there product yet. Yes they are a taiwanese company, but all the technology products in your house are made in the pacific rim.
“1.3 billion people do not make 1.3 billion consumers. The majority of the Chinese still have a subsidence lifestyle, and don’t have time nor money to think about HP computers and iPods.” – Dave H
While I agree that it’s foolish to look at a number of population only to base any conclusion, China does have huge metropolitans that are very modern and westernized. It is an amazing turnabout and in a way pretty sad too since there are lots of poor populations outside these areas. However, in these cities, the youths and the rich people are just as materialistic, commercial and image conscious as any modern places on the planet. I am willing to bet that iPod will make a huge impact there. This is why Apple-HP deal is just amazing. HP does bring their marketing muscle to the deal. Apple needs more deals like this one… let other do the work and just sits back to watch the profit rise.
The only thing to be afraid of is iPod knock-off, but that’ll happen with or without selling iPods in China.
Don’t get me wrong, I don’t view China as some farmstead and a goat nation where they bang two stones together to get fire. I was simply pointing out that whilst China does have some very advanced metropolitan areas, you would probably find only about 100-150m of the Chinese are in a position to think of computers, iPods etc. Carly Fiorina stated 1.3billion consumers, as if she expects to sell 400 million iPods, and that just isn’t going to happen.
HP needs to get Yao Ming to promote their iPod.
He could be wearing it while he practices his free throws (since, unlike Shaq, he can actually make them:) and dunks to music.
” I was simply pointing out that whilst China does have some very advanced metropolitan areas, you would probably find only about 100-150m of the Chinese are in a position to think of computers, iPods etc. Carly Fiorina stated 1.3billion consumers, as if she expects to sell 400 million iPods, and that just isn’t going to happen.” – Dave H
And again, I agree with you. But it is notable that 100-150M people in a position to think of computers, iPods etc. is a whole lot more than the total population of some countries. Assuming that 10% buys iPod, that makes 10-15M iPods sold. Whew!
good news.. but guys like Dell are gonna have to start paying the chinese more money if they expect them to buy computers and music players…
that includes the companies that build apple computers and HP computers…
3 million iPods have been sold. If 0.1% of Chinese buy an iPod that is another 1.3 million. At 1% it’s 13 million. Worth chasing. As for letting them see the technology – ssome iPods are made in China and some in Taiwan I think. None are made in Cupertino. I guess they already know how they are made.