On Chinese Property and Tech Demand
Let’s begin with what we know: China’s appetite for high tech gadgets is exerting a mighty influence on global demand. The recent results from Samsung Electronics (SSNLF.PK), Asia’s leading technology company, give one reason why. The South Korean giant estimates that China’s flat screen TV market is now as large as America’s, and is doubling.
Industry wide, smartphone shipments were up 50% in the first quarter and as Apple’s (AAPL) astonishing first quarter results demonstrate, China is making its weight felt. iPhone sales in China were up 900%. China is also having an impact on the PC market. It is likely that close to 350 m PCs will be shipped this year, a 17% gain on 2009. As the recent results from Microsoft (MSFT) and Intel (INTC) illustrate, consumer demand in both China and other emerging markets has more pull than Western corporate buyers. Yet it will serve investors well to remember an old stock market adage: news follows share prices.