Bangladesh PC market expected to grow by 21.5%

The Bangladesh IT market continued to power forward in 2005, overcoming
broader national challenges to post solid growth. 
The PC market — the cornerstone of the country's IT market —
expanded by 16.4 percent in 2005 to 162,400 units, generating a value of $129.4
million.

The market received a boost from strong economic growth, low PC penetration
and government efforts to encourage automation, such as a drive to equip schools
with computers in the country.  A decrease in prices also helped fuel growth, especially in
the laptop segment, which expanded by 24 percent in 2005. In terms of growth X86
servers and desktops followed terms laptops.

Another
key market driver in the country was the growing attention the market garnered
from leading international IT vendors. Microsoft, Intel and HP were particularly
active during the fourth quarter of the year with investments, training programs
and product launches, all of which helped boost market demand.

“As IT markets across the globe mature, international IT vendors are being
pressed harder to generate growth. With one of the world's largest
populations, strong economic growth and a promising IT workforce, Bangladesh is
increasingly on the radar screens of the world's IT industry juggernauts,”
said Dane Anderson, VP, Spring-board Research. 

With one of the world's largest populations, strong economic growth and a promising IT workforce, Bangladesh is increasingly on the radar screens of the world's IT industry juggernauts

Locally assembled, unb-randed machines continued to dominate the market,
holding over 75 percent PC shipment market share. Among international vendors,
HP led the market with a 7.6 percent share of shipments in 2005, followed by
Dell and Lenovo/IBM. A local brand increasingly seen as a viable alternative to
international players was Daffodil Computers, which made several strategic
announcements in the fourth quarter of the year.

The large enterprise (companies with over 500 employees) and government
sectors collectively accounted for almost half of total PC/server shipments in
2005. NGOs were also an important source of funding for IT investment in the
country, but spending was generally routed through the public sector. In the
enterprise market, banks and telecom companies were the largest vertical
industries for IT spending. The consumer and SME markets represent significant
long-term prom-ise, but both segments currently are in the infancy stage. 

In spite of possible political disruptions in 2006 and 2007, as well as
concerns over social unrest and violence, the Bangladesh PC/server market is
expected to continue overcoming challenges to post healthy market growth.
Springboard forecasts 21.6 percent PC shipment growth in 2006, and expects the
market to maintain similarly strong levels of expansion throughout the forecast
period.

DQW News Bureau New Delhi, April 27