China's Software Market on the Rise: $US2.4 Billion in Value Expected by 1999

Strategic Insights -

Asia's software market, led by China, is poised to reach a significant milestone in 1999, with Yu Zhitian, an expert from the State Office of Information Promotion, predicting a value of up to 20 billion yuan ($US2.4 billion). This growth is driven by various segments, including financial and corporate management software, education and entertainment software, utilities, office and word processing software, data banks, and specialized application tools.

Key Takeaways:

  • China's software market is expected to reach a value of up to 20 billion yuan ($US2.4 billion) in 1999, with various segments driving growth.
  • Yu Zhitian estimates Chinese financial and corporate management software to reach 3.4 billion yuan, education and entertainment software to reach 2.8 billion yuan, utilities to reach 2.6 billion yuan, office and word processing software to reach 2.6 billion yuan, data banks to reach 3 billion yuan, and specialized application tools to reach 1 billion yuan.
  • Kyushu Dentsu Co. will begin production in Shanghai of crystal oscillators for computers and peripherals in April, launches a joint venture with its Taiwan sales unit.
  • Fujitsu Ltd. has signed a deal with China's Nanjing University to set up a joint software-development venture, aiming to establish a major software-development base for itself.
  • Nikon Corp. and IBM have developed a device to enable fabrication of 16-gigabit memory chips, expected to start selling steppers for R&D use in 2002-2003.
  • Computer makers NEC Corp., Toshiba Corp., and seven others have released notebook computers featuring new microprocessors unveiled by Intel Corp.
  • Sony, Toyota, and IIJ have set up a joint venture to offer high-throughput data services over Dedicated Circuits.
  • The Presidential Commission on Year 2000 Compliance has mandated private sector organizations and government agencies to draft contingency plans for Y2K-related projects by January 1, 2000.
  • Malaysia is to host the World Multimedia Expo in the first quarter of 2000, demonstrating its commitment to the Multimedia and Information Technology in its education system.
  • Apple Computers aims to create a bigger impact in Malaysia, after keeping a relatively low profile for the past few years.
  • IBM has gained a larger share of the Chinese market through joint ventures and improved production technologies, helping Chinese enterprises improve technical skills and product quality.

Statistics:

  • China's software market is expected to reach up to 20 billion yuan ($US2.4 billion) in value by 1999.
  • Various segments drive growth in the Chinese software market:

+ Chinese financial and corporate management software: 3.4 billion yuan

+ Education and entertainment software: 2.8 billion yuan

+ Utilities: 2.6 billion yuan

+ Office and word processing software: 2.6 billion yuan

+ Data banks: 3 billion yuan

+ Specialized application tools: 1 billion yuan

+ Network operating systems: 800 million yuan

+ Chinese platforms: 400 million yuan

+ PC operating systems: 800 million yuan

+ Other products: 2.6 billion yuan

  • Kyushu Dentsu Co. joint venture will be capitalized at 190 million yen.
  • Fujitsu Ltd. aims to establish a major software-development base for itself through the joint software-development venture with China's Nanjing University.
  • Estimated revenue for the joint venture between Nikon Corp., IBM, and Sony, Toyota, and IIJ for high-throughput data services: not explicitly mentioned.

Sources:

  • Asia Pulse (http://www.asiapulse.com)
  • Yu Zhitian, State Office of Information Promotion
  • Kyushu Dentsu Co.
  • Fujitsu Ltd.
  • Nikon Corp.
  • IBM Corp.
  • NEC Corp.
  • Toshiba Corp.
  • Apple Computer
  • Presidential Commission on Year 2000 Compliance (Y2K Commission)
  • COMTEX (http://www.comtexnews.com)